Businesses impacted by the coronavirus will be able to access a subsidy from the Government (JobKeeper Payment) to continue paying their employees.
JobKeeper Payment information for businesses and sole-traders
The JobKeeper payment is intended to provide wage subsidies to businesses and sole traders that are significantly affected by COVID-19 (coronavirus).
The JobKeeper payment is open to eligible employers, sole traders and other entities to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight. You can enrol for the JobKeeper payment through the ATO's Business Portal, in ATO online services using myGov if you are a sole trader, or through a registered tax or BAS agent.
Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.
Employers need to pay all eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month by the ATO.
Individuals cannot receive the JobKeeper payment twice (i.e.: payment from an employer and a direct payment for your personal business)
Enrolment is now available
Eligible employers can claim a fortnightly payment of a fixed amount of $1,500 per eligible employee per month, for a maximum period of 6 months.
Employers need to pay all eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment.
Superannuation and JobKeeper payments
New rules are being introduced by the government with the intention to not require super guarantee to be paid on additional payments that are made to employees as a result of JobKeeper payments. We will update this information once legislation or regulations are in place.
To be eligible for the JobKeeper payment, sole traders, employers and their employees must meet a range of criteria. Visit the ATO website for eligibility information.
Preparing and enrolling for the JobKeeper payment
Step 1: Prepare for enrolment
Step 2: Enrol for the JobKeeper payment
Step 3: Identify and maintain your eligible employees
Step 4: Make a monthly declaration through the Business Portal or via your registered tax or BAS agent.
What you need to do for your employees
Identify your eligible employees and tell them you intend to claim the JobKeeper payment for them. If you're participating in the JobKeeper Payment scheme you need to include all eligible employees.
You need to provide these employees with the JobKeeper employee nomination notice and ask them to return it to you by the end of April if you want to claim JobKeeper payment for April.
If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they cannot nominate you. They cannot be nominated for the JobKeeper payment by more than one employer.
If an employee is receiving or in the process of applying for a Services Australia income support payment, like JobSeeker payment, they should contact Services Australia and let them know that their employer has applied for the JobKeeper payment. The ATO and Services Australia are working together to share information to identify instances of the incorrect eligibility for JobKeeper or JobSeeker. If your employee does not report the income or cancel their JobSeeker payment, they may incur a debt that they will be required to pay back.
Paying eligible employees
You need to pay all your eligible employees at least the minimum amount of $1,500, even if you re-hire them or they earn less than this per fortnight. You cannot pay your employees less than $1,500 per fortnight and keep the difference. You will not be eligible for the JobKeeper payment if you pay your nominated employee less than $1,500 per fortnight.
Visit the ATO for more information about:
- How to pay
- When to pay
- How much to pay
- Tax consequences
- Superannuation guarantee
- What you can’t do
For more information, updates and to register your interest for the JobKeeper payments, visit the Australian Taxation Office website.
This is general information only and does not take into account your individual objectives, financial situation or needs. Accordingly, before taking any action, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. You should obtain a copy of legalsuper’s Product Disclosure Statement (PDS) which is available by contacting legalsuper or via its website at legalsuper.com.au before making a decision.