• Lockwood & Ward

JobKeeper Payment


STOP PRESS UPDATE: 7 April 2020: The Australian Government has also released a comprehensive set of Frequently Asked Questions. Please find questions here.


The JobKeeper Payment was announced on 30 March, it is very important to ensure that you meet the eligibility requirements. For our small business clients, if your turnover will be reduced by more than 30 percent, compared to a relative period a year ago, then you will be eligible. Please then register as soon as possible at this link on the ATO website.


Obligations on employers


To receive the JobKeeper Payment, employers must:


  • Register an intention to apply on the ATO website and assess that they have or will experience the required turnover decline.

  • Provide information to the ATO on eligible employees. This includes information on the number of eligible employees engaged as at 1 March 2020 and those currently employed by the business (including those stood down or rehired). For most businesses, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business.

  • Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). For employees that were already receiving this amount from the employer then their income will not change. For employees that have been receiving less than this amount, the employer will need to top up the payment to the employee up to $1,500, before tax. And for those employees earning more than this amount, the employer is able to provide them with a top-up.

  • Notify all eligible employees that they are receiving the JobKeeper Payment.

  • Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.


Background on JobKeeper Payment


Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.


Eligible Employers


Employers will be eligible for the subsidy if:

  • their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or

  • their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and

  • the business is not subject to the Major Bank Levy.

The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.



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We are Taxation and Business Advisors in Sydney.

Services include: 

  • Business Taxation advice

  • Personal Income Tax Returns

  • Super and SMSF advice

  • Finance and Mortgages

  • Accounting and Bookkeeping

 

Professional Standing

  • Member: ICAA

  • Licenced Auditors

  • Registered Business Agents

  • Registered Tax Agents

 

Lockwood and Ward • Taxation and Business Advisors • Level 9, 50 Clarence St Sydney NSW 2000

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