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JobKeeper Payments Announced

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 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.

The ATO has now issued instructions outlining how businesses can enrol for the JobKeeper payment, enrolment with the ATO is open from the 20th April 2020.

A business can enrol for the JobKeeper payment via the following steps:

  1. Contact your Accountant to determine whether your business is eligible. As an employer, you need to be able to prove your business revenue has fallen by 30% from a comparable period last year.
  2. Check you and your employees meet the eligibility requirements.
  3. Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).
  4. Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf. Send the JobKeeper employee nomination notice to your employees to complete and return to you by the end of April. A copy of these should be provided to our office.
  5. From 20th April 2020, you can enrol with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.
  6. From the 4th of May you can apply with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID.

Next steps:

  • If you are yet to speak to your Accountant regarding the JobKeeper payment, please do so. They will be able to discuss if you meet the eligibility criteria. 
  • Determine if our office will apply for the Jobkeeper Scheme on your behalf or if you will complete the application yourself. This can be confirmed with your Accountant.
  •  If you wish to complete this application yourself, we recommend you read through the most recent information provided by the ATO.  https://www.ato.gov.au/General/JobKeeper-Payment/

Note that you should not use the JobKeeper employee nomination notice if you intend to claim JobKeeper payments for an eligible business participant, for example:

  • a partner in a partnership
  • an adult beneficiary of a trust
  • a shareholder or director of a company
  • a sole trader.

A different nomination process for these will be required. Please contact your Accountant for more details.

The team at SHB Business and Wealth Advisers are here to support you during this time and are available to offer advice whenever you may need it.

office@shbbusiness.com.au

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P.O. Box 495
78 Henna Street, Warrnambool, VIC
Phone: (03) 55 618 618
Fax: (03) 55 618 600
Website: www.shbbusiness.com.au
Email: office@shbbusiness.com.au

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