Background
The government has introduced a $130 billion JobKeeper Payment scheme to support businesses significantly affected by the Coronavirus to help keep more Australians in jobs. The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight.
- Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.
- Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment.
- This will be paid to the employer in arrears each month by the ATO. The first payments to eligible employers will commence in the first week of May 2020.
- JobKeeper payments can be made for the period beginning 30 March 2020.
- If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment.
If your business is affected by the Coronavirus, you may be eligible to access the JobKeeper payment to assist you to be able to continue paying your employees. Employers can choose to participate in the scheme and then nominate the employees they are entitled to claim for.
- Employers
- Sole Traders
- Business Owners Actively Engaged
- Employers will be eligible for the JobKeeper payment if all of the following apply:
- On 1 March 2020, you carried on a business in Australia or were a not-for-profit organisation that pursued your objectives principally in Australia.
- You employed at least one eligible employee on 1 March 2020.
- Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
- Your business has faced a:
- 30% fall in turnover (for an aggregated turnover of $1 billion or less)
- 50% fall in turnover (for an aggregated turnover of more than $1 billion), or
- 15% fall in turnover (for ACNC-registered charities other than universities and schools).
- Your business is not in one of the ineligible categories.
Sole traders can be eligible for the JobKeeper payment if their business has experienced a downturn according to the eligibility criteria.
We are currently waiting for more information from the ATO on the eligibility of sole traders for the JobKeeper payment.
Other businesses in the form of a company, trust or partnership can also qualify for JobKeeper payments where:
- a business owner (a shareholder, adult beneficiary or partner) is actively engaged in the business, or
- a director is actively engaged in the business.
This is limited to one entitlement for each entity even if there are multiple business owners or participants.
We are currently waiting for the ATO to provide more information on the eligibility of these businesses for the JobKeeper payment.
Enrol in JobKeeper Scheme from 20 April
You will be able to enrol in the JobKeeper scheme from 20 April 2020:
- by using an online form on the ATO website,
- you will need a myGovID linked to your ABN in Relationship Authorisation Manager (RAM) or
- your Accountant or Tax Agent can complete the application process on your behalf.
Once your application has been accepted there will be ongoing monthly reporting obligations
Call us for Help
If you would like Fortuna to apply for the JobKeeper payment on your behalf, please provide the following information:
- The number of eligible employees you wish to claim for
if you are unsure of an employees’ eligibility please contact us for more information
- Completed Employee Nomination Form for each eligible employee
ask us for a copy
- Bank Details (for receipt of payment)
- Projection of Monthly turnover for April 2020 or Quarterly turnover (for April to June 2020) and comparative position for 2019*
if you require assistance in calculating your projected turnover, please contact us
*the projection will be on cash or accrual basis depending on whether you are registered for GST (cash or accrual basis)
