Under the JobKeeper Payment, businesses significantly impacted by the coronavirus outbreak will be able to access a $1,500 subsidy per fortnight for up to six months to continue paying their employees.
This payment is available for every full-time, part time and casual employee who has worked for the business for more than 12 months and who were on the payroll in March.
This assistance will help businesses to keep people in their jobs and ramp up when the crisis is over. For employees, this means they can keep their job and earn an income – even if their hours have been cut.
Employers will be eligible for the subsidy if:
- their business has an annual turnover of less than $1 billion and estimate their turnover has fallen or will fall by more than 30 per cent.
How to apply
Businesses can enrol with the Australian Taxation Office for the JobKeeper Payment using the Business Portal and authenticate with myGovID. Businesses must do this by the end of May to claim JobKeeper payments for April and May.
Payments started in the first week of May 2020. It’s paid one month in arrears.
Sara runs a landscaping company, and employs five full-time gardeners. Sara is paying her employees $1,700 per fortnight before tax. She expects that her turnover will decline by more than 30 per cent over the coming months and that she will either need to lay staff off, or reduce their wages significantly.
As a result of the JobKeeper Payment, Sara will be able to keep employing every gardener, and only needs to pay the $200 wage cost per fortnight before tax per employee above the $1,500 per fortnight (before tax) JobKeeper Payment.