The Federal Government has announced it will give struggling businesses a $130 billion bump to keep more Aussies employed during the COVID-19 crisis.

Who gets the JobKeeper subsidy?

Businesses that have an annual turnover of less than $1 billion and self-assess they have a reduction in revenue of 30% or more since 1 March 2020 (over a minimum one-month period), will be eligible to receive the JobKeeper subsidy.

Businesses that have an annual turnover greater than $1 billion will need to demonstrate a 50% reduction in revenue to be eligible. Sole traders are also eligible to apply.

How do employees fit into the equation?

The JobKeeper payment has the specific aim of subsidising employee wages. It is available for any employees who were on the books as at 1 March 2020, which includes full-time and part-time employees, as well as casual staff that have been with the business for at least 12 months. And yes, employers can bring back recently sacked staff and access the JobKeeper payment.

How much are we talking?

Eligible businesses will be given $1,500 per fortnight to subsidise all or part of the wages for each eligible employee, regardless of whether the employee is performing actual work. For example, the JobKeeper payment is still available for employees who have been stood down.

Employers must ensure that the full JobKeeper payment is passed onto employees. To put it simply:

  • For employees on a wage of $1,500 a fortnight, their income won't change. The JobKeeper payment will subsidise their entire wage.
  • For employees on a wage of less than $1,500 a fortnight, they will get a pay bump and receive the full $1,500 JobKeeper payment.
  • For employees on a wage of more than $1,500, the JobKeeper payment will subsidise part of their salary and the gap can be made up by the employer.

Superannuation contributions only need to be made on employees' usual wages and not the additional amounts paid as a result of the JobKeeper payment.

When will JobKeeper payments be rolled out and how long will it last?

JobKeeper payments will commence the first week of May but will be backdated to 30 March 2020. The current plan is for the JobKeeper subsidy to be available for the next six months.

Where do employers sign up?

Employers can register an intention to apply on ato.gov.au and assess whether they have or will experience the required turnover decline to be eligible. Employers can also start providing employee information to the ATO for the purpose of accessing the JobKeeper payment but must inform employees that they have been nominated to receive the payment.

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