2. Job Keeper Payment (JKP)

Employers for employees

Under the JobKeeper Payment, businesses significantly impacted by the Coronavirus outbreak will be able to access a temporary JKP from the Government to continue paying their employees.

The Government will provide $1,500 per fortnight per eligible employee for up to 6 months and no superannuation paid on this amount. It will be up to the employer if they want to pay superannuation on any additional wage.

Employers will be eligible for the subsidy if the business has gross income less than $1 billion and the gross income will be reduced by more than 30 per cent relative to a comparable period a year ago of at least one a month.

For example, April 2020 gross income compared to April 2019 gross income.

Employers must elect to participate in the JKP scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees employed by the business on a monthly basis.

Eligible employers will receive the payment for each eligible employee who was on their books on 1 March 2020 and continues to be engaged by that employer.

An eligible employee includes; full-time, part-time, long-term casuals and stood down employees (and subsequently re engaged). Casual employees eligible for the JKP are those employees who have been with their employer on a regular basis for at least the previous 12 months as at 1 March 2020.

An eligible employee must be an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.

Self employed

The JKP is also available for the self employed.   Self-employed individuals will be eligible to receive the JKP where they have suffered or expect to suffer a 30 per cent decline in gross income relative to a comparable prior period (of at least a month).  No further information has been provided as to what comparable period would be assessed.

The JKP subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May.  Payments will be made to the employer monthly in arrears by the ATO.