1. JobKeeper for Employers
JobKeeper payments are payable to qualifying employers for a maximum of 13 fortnights in respect of each eligible employee on their books on 1 March 2020 who is retained by the employer. Qualifying employers will receive a payment (fortnightly in arrears) of $1,500 per fortnight for each eligible employee.
Substantiation of turnover decrease
Turnover will be defined according to the current calculation for GST purposes and is reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies.
Most businesses would be expected to establish their turnover has fallen in the relevant month or quarter (depending on the Business Activity Statement reporting period of that business) relative to their turnover in a corresponding period a year earlier eg April 2020 vs April 2019
Where a business was not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, (e.g. because there was a large interim acquisition, they were newly established, were scaling up, or their turnover is typically highly variable), the ATO will have discretion to consider additional information that the business can provide to establish they have been adversely affected by the impacts of the Coronavirus.
If a business does not meet the turnover test at the start of the JobKeeper scheme on 30 March 2020, the business can start receiving the JobKeeper Payment at a later time once the turnover test has been met. The payment is not backdated to the commencement of the scheme. Businesses can receive JobKeeper Payments up to 27 September 2020.
There will be some tolerance where employers, in good faith, estimate a 30 per cent or more in turnover but actually experience a slightly smaller fall.
Changes to employee hours and job description – JobKeeper Enabling Directions
In addition to providing substantial subsidies to businesses to cover employee costs, the Government has amended the Fair Work Act to provide employers (who qualify for the JobKeeper scheme) with temporary powers to implement flexibility measures in order to save jobs.
Fair Work Act amendments allows employers to:
- issue JobKeeper enabling directions, including directions requiring employees to:
(a) work reduced or alternate hours or days (a JobKeeper enabling stand down direction);
(b) undertake alternate duties within their skill and competency; or
(c) work at an alternate location;
- request employees to take accrued annual leave; and
- agree with employees for annual leave to be taken at half pay
A JobKeeper enabling stand down direction can only be given if the employee cannot be usefully employed for their normal days or hours of work because of changes to business attributable to:
- the COVID 19 pandemic; or
- Government initiatives to slow the transmission of COVID 19.
During a JobKeeper enabling stand down, the employer must:
- pay the employee each fortnight at least the greater of:
(a) the $1500 JobKeeper payment; or
(b) the amounts payable to the employee in relation to the performance of work during the fortnight (including all wages, allowances, loadings, penalties, etc); and
- not reduce the employee’s ordinary hourly rate of pay for each hour of work performed.
The employer must give the employee at least three days written notice of the intention to give a direction or lesser period by genuine agreement.
With these new temporary changes you may require legal advice. We have spoken to Nick Chadwick from Chadwick Workplace Law who can assist you navigate these new changes, if you need legal advice, please contact
Nick Chadwick
Wage payments to employees
Employees paid less than $1500 per fortnight
To be able to claim the JobKeeper payment for an eligible employee, that employee must be paid a minimum of $1,500 income per fortnight, before tax is withheld or the employer cannot claim the subsidy for the eligible employee. That is, an employee that is earning less than $1500 per fortnight will receive a “windfall”.
Employees paid more than $1500 per fortnight
If the eligible employee is paid more than $1,500 a fortnight before tax, the employer will only be reimbursed $1,500 per fortnight. The employer continues to pay the wages over the $1500 but receives a subsidy for the first $1500. The employer can alter the hours but not the hourly rate of pay of an employee, refer “Enabling Directions” above.
Payments from the government
The first period starts on Monday 30 March 2020 and ends on Sunday 12 April 2020. The payment requirement is they pay their eligible employees a minimum of $1,500 per fortnight in the scheme payment periods.
Where an employer pays their staff monthly, the ATO will be able to reallocate payments between periods. However, overall an employee must have received the equivalent of $1,500 per fortnight. The final period will start on Monday 14 September 2020 and end on Sunday 27 September 2020.
