FEDERAL GOVERNMENT JOBKEEPER PAYMENT

On 30 March 2020, the Federal Government announced $130 billion for a new JobKeeper Payment for businesses and workers affected by COVID-19. This includes workers who have been stood down.

Businesses will be paid a flat-rate of $1,500 per fortnight, per eligible employee. Every eligible employee must receive at least $1,500 per fortnight, before tax.

Which workers are eligible for the JobKeeper Payment?

Workers eligible for the JobKeeper Payment include:
-Full-time workers
-Part-time workers
-Casual employees who have been with their employer for at least 12 months
-Sole traders
-Self-employed individuals
-Australian residents
-New Zealanders on 444 visas
-Migrants who are eligible for the JobSeeker Payment or Youth Allowance (Other).
-An employee will only be eligible to receive the JobKeeper Payment from one employer.

How will the JobKeeper Payment be administered?

The Job Keeper Payment will be administered through the Australian Taxation Office. The JobKeeper Payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.

When will the JobKeeper Payment be delivered?

The program will commence 30 March 2020 and deliver payments to eligible businesses in the first week of May. Eligible businesses can begin distributing the JobKeeper Payment immediately and will be reimbursed from the first week of May. Payments will be backdated to 1 March 2020.

Which businesses and organisations are eligible?

Eligible employers will be those with annual turnover of less than $1 billion who self-assess that experience a reduction in revenue of 30 per cent or more, since 1 March 2020 over a minimum one-month period.

Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50 per cent or more to be eligible. Businesses subject to the Major Bank Levy will not be eligible.

Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible.

Where can I find out more about the JobKeeper Payment?

More information on the JobKeeper Payment can be dowloaded here. Eligible businesses can apply for the JobKeeper Payment online and are able to register their interest via ato.gov.au.

What about the JobSeeker Payment?

Workers cannot claim both the JobSeeker and JobKeeper Payments, but can be moved across to the JobKeeper Payment if eligible.

Over the next six months the Government is temporarily expanding access to income support payments and establishing a Coronavirus Supplement of $550 per fortnight.

The JobSeeker Payment is subject to a partner income test. The partner income test has been temporarily relaxed to ensure that an eligible person can receive the JobSeeker Payment, and associated Coronavirus Supplement, provided their partner earns less than $3,068 per fortnight, around $79,762 per annum.

The personal income test for individuals on the JobSeeker Payment will still apply.

N.B. This summary was prepared by Live Performance Australia, and generously shared with TNA for our members.