Business support announcement 19 August

 

SMALL BUSINESS COVID HARDSHIP FUND

An additional allocation of $72 million will boost the Small Business COVID Hardship Fund to $252 million, with grants increasing from $10,000 to $14,000 and available to small- and medium-sized businesses across the state.

The fund opened for applications on 12 August 2021 through the Business Victoria website and will help up to 18,000 businesses that have been ineligible for business support programs and have experienced a reduction in revenue of at least 70 per cent.

Businesses that are legally allowed to operate but are restricted in their ability to generate revenue – such as a food store located at a shopping centre or a manufacturer supplying goods for closed venues – will be among those businesses that that could be eligible.

 

BUSINESS COSTS ASSISTANCE PROGRAM

More than 110,000 businesses in metropolitan Melbourne will automatically receive payments of $5,600 ($2,800 per week) through a $625 million injection.

The Business Costs Assistance Program provides support for businesses that are significantly affected due to the lockdown but continue to incur costs.

 

LICENSED HOSPITALITY VENUE FUND 2021

Automatic payments of $5,000, $10,000 and $20,000 per week will be made to about 7,000 licensed hospitality premises in metropolitan Melbourne that have previously received grants under the Licensed Hospitality Venue Fund 2021 or July Extension programs. An additional $110 million has been allocated to the new licensed hospitality venue initiative.

Payment amounts will be stepped according to premises capacity: $5,000 for a capacity of up to 99 patrons, $10,000 for a capacity of 100 to 499 patrons and $20,000 for a capacity of 500 or more.

 

COVID-19 DISASTER PAYMENTS

Eligible workers across the state who lose hours of work due to the lockdown will be able to access the Commonwealth’s COVID-19 Disaster Payment, as will individuals who are sole-trader business owners who lose work and that do not qualify for Victorian Government support programs.

The COVID-19 Disaster Payment is administered through Services Australia, with the Federal Government funding the areas declared a Commonwealth hotspot and the Victorian Government assuming responsibility to fund payments in the rest of the state.

The payment is set at $450 for people who have lost from eight to 20 hours work or a full day of work (over seven days), and $750 for 20 hours or more of work lost. People who receive certain Commonwealth income support are eligible to receive a $200 payment where they have lost eight hours or more of work due to the lockdowns.

 

 

Australian banks offer customer relief

Although we know that the Australian economy is in relatively good shape, the current lockdown situation, following previous disruptions does take its toll on customers and as a result, recovery can be slow. 

Therefore, thankfully, the Australian Banking Association has declared that they will support both Australian businesses and customers suffering as a result of closed businesses and reduced hours.

There is no need to tough it out on your own and if you are finding your situation difficult, your bank has ways to help you get through it. By assessing your situation on a case by case basis, whether you be an individual, a small business or a larger scale one, options will be made available to ensure that the necessary lockdowns do not pose a significant and lasting detrimental impact on your financial wellbeing. 

Irrespective of where you are living and working in Australia, we urge you to feel comfortable with contacting support either directly with your bank or by talking to a financial advisor such as one of our accounting specialists at Glance to discuss your current situation, forecast your future prospects and potentially pivot to make positive change.

You may be made aware of packages that are available to you through the government or relief can be offered to you by your bank to provide respite as lockdowns continue for the wellbeing of the health system and our communities.

Support from banks include business banking payment deferrals, which can extend for up to 3 months and is available only to loans that are good standing. Some 98% of small businesses can receive this support, designed for those borrowing less than $3 million with a turnover of less than $5 million. 

Everyday banking support and home loan support is also available to both individual and business customers which include refunds of merchant terminal fees for up to three months, waiving of fees and notice periods and home loan deferrals on a month by month basis, depending on your situation. 

Speak up and receive the support that is available to you so that you do not need to suffer through any detrimental financial impacts that the lockdowns may otherwise impose on you and your business. 

Contact our friendly team of trusted advisors on 03 98859793 or at enquiries@glanceconsultants.com.au to discuss your needs today.

What you need to know about the VIC Budget 2020-21 announcements

 

 

 

 

 

 

 

 

 

 

“This budget is about repair, recovery, and making us stronger than before. This is a budget that puts people first.” — Daniel Andrews, Premier of Victoria

VIC budget has recently been announced and just as the Premier has said, the budget focuses on rebuilding the economy and helping people recover.

Here are some important things you have to know about it.

Payroll Tax Measures

There will be an increase in the yearly reporting threshold for businesses that are registered for payroll tax in the state. From $40,000, the threshold will increase to $100,000 on July 1st, 2021.

Did your taxable wage increase this year? Is your payroll less than $10 million? Your business may qualify for a payroll tax credit for the tax year 2020-21. Additionally, if you meet this threshold in 2021 to 2022, you could apply for the same tax credit for the same payroll tax year. This move hopes to encourage business owners to create new jobs, rehire workers, and restore or increase their hours.

Land Transfer Duty Measures 

There will be a 50 per cent land transfer duty concession for contracts made on or after January 2021 for industrial and commercial properties in Victoria.

Additionally, all residential purchases in the state with a dutiable value of up to $1 million will have a 50 per cent land transfer waiver. This waiver applies for contracts made between November 25th of this year and before July 1st of 2021. However, you may still have to pay Foreign Purchaser Additional Duty if it applies to you.

Land Tax Measures 

Land occupied and owned by not-for-profit clubs will be exempted from the absentee owner surcharge. However, to be eligible for the exemption, the clubs should have been offering cultural, educational, literary, recreational, and social interests to their members. Racecourses do not qualify for this exemption and they maintain their current concessional rate.

From land tax year 2022 until January 2040, eligible build-to-rent developments will receive a 50 per cent land tax discount. Furthermore, they will be exempted from the absentee owner surcharge.

Additional COVID-19 Tax Relief Measures 

Those who are building or buying new residential properties in Victoria could be eligible for a $20,000 First Home Owner Grant. To qualify, your contracts must be made by June 30th, 2021. There will also be a full waiver of vacant residential land tax liabilities in 2021 caused by 2020 property vacancies.

Are you confused with all these adjustments and changes? Glance Consultants can help. Our team provides personalised services to meet your needs. We offer individual and business taxation services, bookkeeping, business advisory and more.

Call us at 03 9885 9793 or email enquiries@glanceconsultants.com.au to learn more about our services and how we can help your business.

The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021


The JobKeeper extension has passed — There will be important changes to the wage subsidies. Here’s what you need to know.

There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The extension periods are:


The rates of payment will change

The rate of the JobKeeper payment in each extension period will depend on the number of hours:

  • an eligible employee works, or
  • an eligible business participant is actively engaged in the business.

It will be split into two rates.


Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.


JobKeeper extension 1

This extension period will run from 28 September 2020 to 3 January 2021.

You will need to show that your actual GST turnover has declined by 30% or more in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,200 per fortnight (before tax)
  • Tier 2: $750 per fortnight (before tax).


JobKeeper extension 2

This extension period will run from 4 January 2021 to 28 March 2021.

You will need to show that your actual GST turnover has declined by 30% or more in the December 2020 quarter relative to a comparable period.

You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,000 per fortnight (before tax)
  • Tier 2: $650 per fortnight (before tax).


What you need to do

From 28 September 2020, you must do all of the following:

  • work out if the tier 1 or tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners
  • notify us and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them
  • during JobKeeper extension 1 – ensure your eligible employees are paid at least
    • $1,200 per fortnight for tier 1 employees
    • $750 per fortnight for tier 2 employees
  • during JobKeeper extension 2 – ensure your eligible employees are paid at least
    • $1,000 per fortnight for tier 1 employees
    • $650 per fortnight for tier 2 employees.


What doesn’t change

To claim for fortnights in the JobKeeper extension 1 or 2:

  • You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to
    • holding an ABN, and
    • declaring assessable income and supplies.


New JobKeeper participants

The JobKeeper scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.

How to establish a long-Term business strategy amid the COVID-19 Pandemic



Today, various businesses in Australia have begun developing long-term strategies to help minimise the adverse effects of the coronavirus pandemic within the industry. Moreover, identifying the most effective way to maximise your market value relies heavily on your innovative solutions, specifically when it comes to generating leads, boosting ROI, and raising conversion rates.

While establishing a long-term strategy may sound like an easy thing to do, finding the best one that fits perfectly with your business needs is not that simple. So to help you develop a strategy that can support your business in these trying times, here are several points to consider:

Be Customer-Focused

Avoid focusing too much on numerical information — you need to understand the specific challenges that your consumers might be facing. For example, some of your consumers may be more price-conscious than usual due to a recent job loss or financial strain.

Stay Relevant

To get ahead of the curve against your competitors, you need to be able to answer and solve the problems that your consumers face amidst the ongoing crisis. However, take note that the issues you are attempting to address and solve could change – especially during a pandemic. That is why it is vital to be attuned to the current disposition of the business climate. By understanding the current state of the industry and staying up-to-date with the latest news, you should be able to arm yourself with the correct strategy while addressing the key issues that may affect your business.

Keep Your Message Clear

Due to the pandemic, many businesses continue to change the way they distribute products or services to their customers. Whether you are releasing a new product, offering innovative delivery options, or changing your time or availability, always make sure to keep your messaging clear in every digital marketing channel you utilise.

The COVID-19 pandemic is still on (at least until a vaccine is developed) and coming up with a long-term strategy is necessary for business survival. If you’re currently struggling with your finances, Glance Consultants will be able to extend help by providing you with expert advice and more.

Contact us 03 9885 9793 at or fill out our contact form to get in touch with us today.

Do You Have a Pandemic Business Plan

pandemic business planAs the world continues to fight against the coronavirus pandemic and countries try to flatten the curve, businesses have started adapting to a “new normal.” But if there is one lesson many entrepreneurs are learning from our situation, it’s the importance of having a pandemic business plan.

What is a pandemic business plan?

A pandemic business plan is your company’s guide to responding to emergencies, particularly in a long-term crisis like the coronavirus spread. It contains policies for communicating among employees and clients. This plan also includes budget contingencies and other strategies to ensure your business stays in operation during any situation.

How do you create a pandemic business plan?

The first step to creating a pandemic business plan is to build a team of experienced and trusted individuals who truly understand how your company operates. When possible, try to include members from all departments, like your HR, operations, and your top management team. This way, you’re able to see the bigger picture and how each department would play a role in an emergency.

When you have your risk management team all set up, it’s time to do the work:

1. Set up guidelines

Lay the foundation of your pandemic business plan. Create the guiding principles that everyone must follow during a situation like a pandemic. Your guidelines should include how the company will continue providing and supporting your employees.

Will you be offering medical care for your staff? Who will be responsible for caring and communicating with your team? Additionally, this is the part where you may need to decide whether to temporarily pause any ongoing programs to ensure you have enough budget for your business essentials.

2. Develop a communications plan

Communication is vital in an emergency and especially during a pandemic. Set up a communications program or policy that ensures your staff receive important company updates and messages even when they’re not in the office. The same goes for your clients. How do you plan to reach out to them and let them know of significant company changes or updates?

3. Create a flexible workforce schedule

Understandably, you may want to continue providing services to your clients and maintaining business operations even during this time. However, you should make sure that your company can do this safely.

Think about setting up a flexible work schedule for your staff. When possible, give them the option to work from home.

The coronavirus pandemic is changing the way many entrepreneurs and companies do business. What changes have you implemented in your workplace? If you need help adapting to our current situation, Glance Consultants can assist you. We offer strategic business advice and planning, business performance management, and cashflow management.

Call us at 03 9885 9793 or fill out our contact form for your enquiries. We continue to commit ourselves as your trusted advisor in your ever-changing business journey.

Leadership Characteristics To Help Your Business Outlast the Coronavirus Outbreak

leadership in times of crisis

Do you feel like you’re being pulled from every direction while trying to keep your business afloat during the COVID-19 outbreak?

We are living in difficult times. As we start adapting to our current situation, however, here’s something to keep in mind as business owners and leaders of your organisation:

 

 

“It is in times of crisis that good leaders emerge” — Rudolph Giuliani

While it may seem difficult, there is no better time than now to be visible and take charge in all aspects of your business. Your customers need you. Most importantly, your employees need your support and direction.

Here are some leadership characteristics to help you during this time:

Confident and Calm

If you’re the first one to go screaming out the door, then don’t expect your employees to be calm.

Your staff, customers, and other stakeholders are relying on your leadership to get your business through the challenging months ahead. This isn’t the time for self-doubt and inaction. It’s the time to implement your crisis management plan or create one if you don’t have any.

While your leadership is essential during this period, it doesn’t mean that you have to do everything on your own. Get everyone on board and remember, “We are all in this together.”

Transparent

Communication is critical in times of crisis. When everyone understands the challenges that your company is facing and what you’re doing to solve those issues, there will be no cause to panic. Your staff won’t have to worry about the future of your business, which directly affects their future.  

Innovative

Now is a great time to think out of the box. Since the outbreak, many businesses have opted to continue their operations from home. Can your business do the same? If yes, what technologies will you and your staff need to get the business going?

Some basic applications and services you may need are: 

  • A video messaging application for your weekly meetings
  • An online file hosting service so your team could access documents conveniently
  • Online accounting software to keep your books up-to-date
  • An online calendar to schedule workflows, team huddles, and client meetings

Compassionate

If there is one important characteristic a leader should have during this time, it’s compassion. Don’t get too caught up with managing your business that you end up forgetting the needs of your people.

Every member of your staff is handling the situation differently. Check-in on them regularly and see how you can help make things easier for them.

The Coronavirus pandemic has caught many businesses off guard. While the future may seem uncertain, one thing is for sure. Your business could thrive and survive any crisis with good leadership.

For assistance and support, get in touch with Glance Consultants. We offer a range of services for Small to Medium Enterprise. You can send an email to enquiries@glanceconsultants.com.au or call us at 03 9885 9793.

How to Maintain Customer Relationships During the Coronavirus Outbreak

how to maintain customer relationships during the coronavirus outbreakCOVID-19 has forced many organisations to scale down their business activities, if not temporarily stop their operations altogether. 

While we’re all going through a difficult time and struggling to adapt to our present situation, let’s not forget about our customers. What you do right now could determine the way your customers will work with you in the future. 

Here are some tips to help you nurture customer relationships during the outbreak. 

Humanise Your Brand

Empathy can go a long way — especially during these times. Show your customers that your organisation is more than the services or products you provide. Let them know the steps you’re taking to support your customers, employees and stakeholders. 

The best way to do this is through social media channels. Additionally, consider sending out email newsletters regularly.   

Develop a Customer Communication Strategy

Uncertainties can easily lead to anxiety in the part of your customers. Communication is important. Please don’t leave your customers in the dark. But make sure everyone in your company is saying the same things when reaching out to them. 

To avoid wrong information being sent out or miscommunication, it’s best to create a customer communication task force within your company. This group will be responsible for creating your customer communication strategy. Keep the team small and when possible, choose key individuals that are familiar with the customer-facing side of your business.

Prioritise Customer Issues and Inquiries

It’s understandable for customers to reach out to you more often during a crisis. To ensure you’re providing support promptly, develop a system that prioritises more pressing issues. This way, you could provide immediate assistance to customers who need your support ASAP.

Additionally, never forget to reach out to customers for follow-up. This way, you can make sure that you provided appropriate assistance for them.  

Stick to Your Company Values

It’s easy to forget about your company values, mission, and vision when you’re trying to keep your business afloat. 

Remember that it’s during these times that your customers need you to stick to your promises. Assure them that you will continue to provide the level of support they’ve come to love about your organisation. 

Do you need help managing your business during this time? Glance Consultants is here to assist you. We can help you find a stimulus package that your business is eligible for and get you the financial support you need. 

To learn more about our services, you may call us at 03 9885 9793 or send an email to enquiries@glanceconsultants.com.au

JOBKEEPER PAYMENT

General

WHAT IS THE JOBKEEPER PAYMENT?

The JobKeeper Payment is a payment made to eligible businesses and not-for-profits affected by the
Coronavirus to support them in retaining employees.
Eligible businesses that elect to participate will receive a payment of $1,500 per fortnight per eligible
employee to support the people they employed as at 1 March 2020 who are retained in employment.
Businesses must have paid their employees before they are entitled to receive the JobKeeper payment.
Where an employee’s total remuneration is less than $1,500 per fortnight (before tax), or has been stood
down, the employer must provide the employee at least $1,500 per fortnight (before tax). Where an employee
earns more than $1,500 per fortnight, employers can use the payment to subsidise the employee’s wages.
Self-employed individuals will also be eligible to receive the JobKeeper payment.

WHEN WILL THE JOBKEEPER PAYMENT COMMENCE?

The JobKeeper Payment will be available from 30 March 2020.

HOW LONG WILL THE JOBKEEPER PAYMENT LAST FOR?

The JobKeeper Payment will be available for the period until 27 September 2020.
Employers

IS MY BUSINESS ELIGIBLE?

Employers (including not-for-profits) will be eligible for the subsidy if:
• their business has a turnover of less than $1 billion (and if part of a group for income tax purposes,
the group has a combined turnover of less than $1 billion) and estimate their turnover has fallen or
will likely fall by 30 per cent or more; or
• their business has a turnover of $1 billion or more (or if part of a group for income tax purposes, the
group has a combined turnover of $1 billion or more) and estimate their turnover has fallen or will
likely fall by 50 per cent or more; or
• their business is not subject to the Major Bank Levy.
For charities registered with the Australian Charities and Not-for-profits Commission (ACNC), they will be
eligible for the subsidy if they estimate their turnover has fallen or will likely fall by 15 per cent or more
relative to a comparable period.
JobKeeper Payments are paid in respect of each eligible employee who was employed at 1 March 2020 and
is currently employed by the business (including those who are stood down or re-hired).

WHAT TYPE OF ENTITIES ARE ELIGIBLE?

All business types, including not-for-profits, will be eligible with the exception of those listed below.
The following entities will not be eligible:
• Australian Government and its agencies,
• State and Territory governments and their agencies,
• Foreign governments and their agencies;
• Local council governments;
• Wholly-owned corporations of any of the above; and
• A business subject to the Major Bank Levy.
Additionally, a company that is in liquidation, or a partnership, trust or sole trader in bankruptcy, will not be
eligible.
Some sectors may not be eligible if they are separately provided with support from the Government that
explicitly requires them to forgo access to the JobKeeper Payment.

WHAT DO I NEED TO DO IF I WANT TO PARTICIPATE?

Eligible employers need to determine if they want to participate in this program by electing into it. More
details will be provided about how to do that.
The JobKeeper Payment will be administered by the ATO.
“If you want to participate, you can register your interest on the ATO website to keep updated on
information about the JobKeeper payment via https://www.ato.gov.au/general/gen/JobKeeper-payment/
If you register you will receive updates and information from the ATO about how and when to claim the
JobKeeper payment.
If you are a BAS or Tax agent you do not need to register each client separately, unless you are registering
each client to receive the information directly.

HOW DO I WORK OUT WHICH OF MY EMPLOYEES ARE ELIGIBLE EMPLOYEES?

You will only be able to claim the JobKeeper payment for eligible employees that were in your employment
on 1 March 2020, and continue to be employed while you are claiming the JobKeeper payment.
An eligible employee is an employee who:
• is currently employed by the eligible employer (including those stood down or re-hired);
• is a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer
than 12 months as at 1 March 2020;
• was aged 16 years or older at 1 March 2020;
• was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa
Holder at 1 March 2020;
• was a resident for Australian tax purposes on 1 March 2020; and
• is not in receipt of a JobKeeper Payment from another employer.
You can only claim JobKeeper payment for eligible employees if you pay the $1,500 per fortnight (before
tax) to each eligible employee.
These payments should be made using your payroll system and reported to the ATO via Single Touch
Payroll. This will support the online claim process when it is available.
Last updated: 5 April 2020 3
If you do not report through Single Touch Payroll, you can still claim the JobKeeper payment; however
there will be a manual claim process.
You will be required to advise your employees whether you have nominated them as an eligible employee
for the purposes of the payment.

WHEN WILL I RECEIVE THE FIRST PAYMENT?

The first payments by the ATO will be received by employers in the first week of May.

HOW OFTEN WILL THESE PAYMENTS BE MADE?

The payments will be made by the ATO monthly in arrears.

WHAT ARE THE ELIGIBLE PAYMENT PERIODS FOR REIMBURSEMENT FOR A JOBKEEPER
SUBSIDY?

Employers will need to satisfy payment requirements for their eligible employees in respect of each 14 day
period covered by the scheme. The first period starts on Monday 30 March 2020 and ends on
Sunday 12 April 2020.
The payment requirement is that they pay their eligible employees a minimum of $1,500 per fortnight in
the scheme payment periods. Where an employer pays their staff monthly, the ATO will be able to
reallocate payments between periods. However, overall an employee must have received the equivalent of
$1,500 per fortnight.
The final period will start on Monday 14 September 2020 and end on Sunday 27 September 2020.

IF I HAVE STOOD DOWN MY EMPLOYEES AFTER 1 MARCH 2020, AND ARE NO LONGER
PAYING THEM, DO I NEED TO PAY THEM, FOR WHAT PERIOD AND BY WHEN?

Yes. You can claim JobKeeper for employees that were stood down after 1 March 2020. To be eligible in
relation to these employees, you will need to pay them a minimum of $1,500 per fortnight (before tax) for
the payment periods of the JobKeeper Scheme.
The first payment period under the scheme is from 30 March 2020 to 12 April 2020. Where an employer
pays their staff monthly the monthly payment must be equivalent to the required fortnightly payment.
For all following payment periods you will need to continue to pay your employees a minimum of
$1,500 per fortnight (before tax), before the end of the payment period.

WHAT IS THE DEFINITION OF TURNOVER?

Turnover will be defined according to the current calculation for GST purposes and is reported on Business
Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies.
There are some modifications for businesses that are part of a GST group.
Further information on GST turnover, and how to calculate it, is available at ato.gov.au

IS THIS TURNOVER TEST RELATED TO ONLY TURNOVER IN AUSTRALIA, OR DOES IT INCLUDE
OVERSEAS OPERATIONS AS WELL?

Under the GST law, only Australian based sales are included and therefore, only Australian based turnover
is relevant. A decline in overseas operations will not be counted in the turnover test.

MY BUSINESS HAS ONLY JUST STARTED OR MY BUSINESS HAS “LUMPY” INCOME. HOW CAN
I SELF-ASSESS THAT MY TURNOVER HAS FALLEN 30 PER CENT?

To establish that a business has faced or is likely to face a 30 per cent or more or 50 per cent or more fall in
turnover, most businesses would be expected to establish that their turnover has fallen in the relevant
month or quarter (depending on the Business Activity Statement reporting period of that business) relative
to their turnover in a corresponding period a year earlier.
Where a business was not in operation a year earlier, or where their turnover a year earlier was not
representative of their usual or average turnover, (e.g. because there was a large interim acquisition, they
were newly established, were scaling up, or their turnover is typically highly variable), the Tax
Commissioner will have discretion to consider additional information that the business can provide to
establish that they have been adversely affected by the impacts of the Coronavirus.
The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in
specific circumstances (e.g. eligibility may be established as soon as a business ceases or significantly
curtails its operations). There will be some tolerance where employers, in good faith, estimate a 30 per cent
or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall.

MY TURNOVER HAS NOT DECREASED BY 30 PER CENT THIS MONTH, BUT I BELIEVE IT WILL
IN THE COMING MONTH. AM I ELIGIBLE?

You can apply for the payment if you reasonably expect that your turnover will fall by 30 per cent or more
(or 50 per cent or more for businesses with a turnover of $1 billion or more) relative to your turnover in a
corresponding period a year earlier. The ATO will provide guidance about self-assessment of actual and
anticipated falls in turnover.

IT IS UNLIKELY THAT MY TURNOVER WILL DECREASE BY 30 PER CENT IN THE COMING
MONTH, BUT CAN I APPLY LATER IF MY TURNOVER DECREASES IN ONE OF THE
SUBSEQUENT MONTHS?

If a business does not meet the turnover test at the start of the JobKeeper scheme on 30 March 2020, the
business can start receiving the JobKeeper Payment at a later time once the turnover test has been met. In
this case, the JobKeeper Payment is not backdated to the commencement of the scheme. Businesses can
receive JobKeeper Payments up to 27 September 2020.

MY BUSINESS IS STILL OPERATING AND MY EMPLOYEES ARE STILL WORKING. HOW WILL MY
PAYMENTS TO THEM BE AFFECTED?

In many cases, your payments and obligations to eligible employees will not change. Your business, if
eligible, will receive a $1,500 per fortnight subsidy to support their continued employment. However, if any
eligible employee currently earns less than $1,500 before tax per fortnight, you will need to pay them
$1,500 per fortnight before tax to receive the JobKeeper payment.

WHAT IF I PAY MY EMPLOYEES LESS THAN $1,500 PER FORTNIGHT BEFORE TAX?

To be able to claim the JobKeeper payment for an eligible employee, that employee must be paid a
minimum of $1,500 income per fortnight, before tax is withheld.
If you want to claim the subsidy for an eligible employee and they have not been paid $1,500 per fortnight
since 30 March 2020, employers must pay a ‘top-up’ payment to employees so that they are eligible. The
ATO will provide further guidance on how this will work.
The employer will be reimbursed $1,500 per fortnight for each eligible employee.
Employers cannot pay their employees less than $1,500 per fortnight and be entitled to a payment for that
employee.

WHAT IF I PAY MY EMPLOYEES MORE THAN $1,500 PER FORTNIGHT BEFORE TAX?

If the eligible employee is paid more than $1,500 a fortnight before tax, the employer will only be
reimbursed $1,500 per fortnight.

IF I HAVE STOOD DOWN MY EMPLOYEES WITHOUT PAY AFTER 1 MARCH 2020 CAN I ‘BACK
PAY’ THEM TO 30 MARCH 2020?

Yes. If you want to claim the JobKeeper Payment for your employees you will need to confirm your eligible
employees want to be part of the scheme and arrange for them to be paid a minimum of $1,500 per
fortnight before tax from 30 March 2020.

I LET MY EMPLOYEES GO AFTER 1 MARCH 2020. IF I RE-HIRE THEM, AM I ELIGIBLE TO
RECEIVE THE PAYMENT?

Yes. You can receive the payment if you re-hire any eligible employees you had at 1 March 2020. You can
receive the payment even if you then need to immediately stand them down, so long as they remain
employed.

WHAT HAPPENS IF I DON’T HAVE THE MONEY TO CONTINUE PAYING MY ELIGIBLE
EMPLOYEES UNTIL THE PAYMENTS ARE MADE?

The JobKeeper Payment is a reimbursement scheme that will be paid by the ATO monthly in arrears.
In cases where this may present cash flow difficulties, those businesses may want to speak to their bank to
discuss their options. The banks have said businesses may be able to use the upcoming JobKeeper payment
as a basis to seek credit in order to pay their employees until the scheme is making its first payments.

AM I REQUIRED TO PAY PAYGW AND SUPERANNUATION ON THE JOBKEEPER PAYMENT?

You must pay a minimum of $1,500 per fortnight to your eligible employees, withholding income tax as
appropriate. The $1,500 per fortnight per employee is a before tax amount. Where an employee is paid
more than $1,500 per fortnight, the employer’s superannuation obligations will not change. Where an
employee is having their wages topped up to $1,500 per fortnight by the JobKeeper Payment, it will be up
to the employer if they want to pay superannuation on any additional wages paid by the JobKeeper
Payment.

WHAT HAPPENS IF MY EMPLOYEE RESIGNS?

If an employee for whom you are receiving the JobKeeper Payment resigns, you must notify the ATO. You
may need to refund some money to the ATO.

I HIRED AN EMPLOYEE AFTER 1 MARCH 2020. CAN I RECEIVE THE JOBKEEPER PAYMENT FOR
THEM?

No. The employee must have been engaged as of 1 March 2020.

I PURCHASED A BUSINESS IN THE LAST 12 MONTHS AND RETAINED SOME CASUAL
EMPLOYEES WHO WORKED FOR THE PREVIOUS BUSINESS OWNER. ARE THE CASUAL
EMPLOYEES ELIGIBLE?

Employers must assess whether their casual employees satisfy the test of working for 12 months on a
regular and systemic basis. A casual may still meet this condition even if the entity operating the business
has changed recently.

I ACCEPTED SOME CASUAL EMPLOYEES FROM ANOTHER MEMBER OF MY CORPORATE
GROUP. ARE THE CASUAL EMPLOYEES ELIGIBLE?

Employers must assess whether their employees satisfy the test of working for 12 months on a regular and
systematic basis. A casual may still meet this condition even if they were they were transferred from
another member of a corporate group within the last 12 months.

WHAT SHOULD I DO IF I WANT TO RE-HIRE AN ELIGIBLE EMPLOYEE WHO RECEIVED A
REDUNDANCY PACKAGE?

If an eligible employee has received a redundancy package and you wish to re-hire them, you will need to
consult with the employee and consider prevailing workplace arrangements to settle redundancy terms.

WILL THE ATO USE THE JOBKEEPER PAYMENTS TO OFFSET A BAS DEBT?

The payment will generally be paid directly to the employer and not used to offset tax liabilities, as the
intent is that it is a payment that facilitates employers to pay their employees.

I RUN A LABOUR HIRE COMPANY. WILL EMPLOYEES BE ELIGIBLE IF THEIR ‘HOST EMPLOYER’
CLAIMS THE JOBKEEPER PAYMENT?

Employees are only eligible in respect of their direct employer.

CAN I RECEIVE THE JOBKEEPER PAYMENT FOR EMPLOYEES IN RECEIPT OF WORKCOVER?

Employees will not be eligible for the JobKeeper scheme if they are fully incapacitated, unable to work and
being supported by a workers compensation scheme. In other cases, employees would be eligible as they
are in an employment relationship with their employer, provided their employer has an obligation to pay
some component of their salary or wages. If your employee is fully compensated under your workcover
insurance, they will be ineligible for the JobKeeper scheme.

SOME OF MY EMPLOYEES ARE NOT ELIGIBLE EMPLOYEES FOR THE JOBKEEPER SCHEME.
WHAT SUPPORT IS AVAILABLE FOR MY BUSINESS SO I CAN TRY AND RETAIN ALL OF MY
EMPLOYEES?

The Government is providing a range of support to businesses to address the significant economic
consequences of the Coronavirus. The Government is boosting cash flow for employers by providing up to
$100,000 to eligible small and medium-sized businesses, and not-for-profits, that employ people, with a
minimum payment of $20,000. These payments will help businesses with their cash flow so they can keep
operating, pay their rent, electricity and other bills and retain staff.
Other measures to support businesses include temporary relief for financially distressed businesses,
increasing the instant asset write-off and backing business investment.
Further information on the economic response to the Coronavirus is available on the Treasury website at
treasury.gov.au/coronavirus.

Employees

HOW DO I KNOW IF I AM AN ELIGIBLE EMPLOYEE FOR THE JOBKEEPER PAYMENT?

Eligible employees are employees who:
• are currently employed by the eligible employer (including those stood down or re-hired);
• are a full-time or part-time employee, or a casual employed on a regular and systematic basis for
longer than 12 months as at 1 March 2020;
• were aged 16 years or older at 1 March 2020;
• were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa
Holder at 1 March 2020;
• were a resident for Australian tax purposes on 1 March 2020; and
• are not in receipt of a JobKeeper Payment from another employer.

I AM AN ELIGIBLE EMPLOYEE IN AN ELIGIBLE BUSINESS. HOW MUCH WILL I RECEIVE?

Eligible employees will receive, at a minimum, $1,500 per fortnight before tax. You will receive a payment
from your employer.

I AM STILL WORKING OR ON PAID LEAVE AND EARN MORE THAN $1,500 PER FORTNIGHT
BEFORE TAX. WILL MY PAY CHANGE?

No. If you receive $1,500 or more in income per fortnight before tax, you will continue to receive your
regular income according to your prevailing workplace arrangements. The JobKeeper Payment will assist
your employer to continue operating by subsidising part of your income.

I AM STILL WORKING OR ON PAID LEAVE AND I EARN LESS THAN $1,500 PER FORTNIGHT
BEFORE TAX. HOW MUCH WILL I RECEIVE?

For eligible employees, if you receive less than $1,500 in income per fortnight before tax, your employer
must pay you, at a minimum, $1,500 per fortnight, before tax. Your employer will continue to pay you your
ordinary income according to your prevailing workplace arrangements and provide a ‘top-up’ so you
receive $1,500 per fortnight, before tax

I HAVE BEEN STOOD DOWN. HOW MUCH WILL I RECEIVE?

If your employer is eligible for the JobKeeper Payment, and they elect to participate, your employer will
receive $1,500 per fortnight for each eligible employee. They will be required to pay you $1,500 (before
tax) per fortnight. The payment will be treated as income, and so will have tax withheld by your employer
on your behalf.

I HAVE TAKEN UP OTHER WORK AFTER BEING STOOD DOWN. WILL I STILL RECEIVE A
PAYMENT?

Yes. The JobKeeper Payment is not income-tested, so you may earn additional income without your
payment being affected as long as you are eligible and maintain your employment (including being stood
down) with your JobKeeper-eligible employer. However, you can only receive the JobKeeper payment from
one employer, your primary employer.

I WAS EMPLOYED ON 1 MARCH 2020, BUT I WAS STOOD DOWN OR LET GO AND I HAVE
APPLIED FOR OR AM CURRENTLY RECEIVING INCOME SUPPORT (SUCH AS THE JOBSEEKER
PAYMENT) FROM SERVICES AUSTRALIA. WILL I RECEIVE THE JOBKEEPER PAYMENT?

You will be eligible for the JobKeeper Payment if you have been stood down from work, or if your former
employer re-hires you. However, the JobKeeper Payment is treated as ordinary income for the purposes of
social security payments. You must therefore report your change in circumstances to Services Australia if
you are receiving income support, and this is likely to make you ineligible for the JobSeeker Payment or
other income support payments or eligible at a reduced rate.

WILL MY EMPLOYER PAY SUPERANNUATION ON THE JOBKEEPER PAYMENT?

No superannuation guarantee payments are required to be paid on any additional payment made because
of the JobKeeper Payment.

I STARTED WORK WITH MY CURRENT EMPLOYER AFTER 1 MARCH 2020. WILL I RECEIVE
THIS PAYMENT FROM THAT EMPLOYER?

No. The JobKeeper Payment supports businesses to maintain eligible employees who were in their employ
on 1 March 2020. You may be eligible for the JobKeeper Payment if you are currently stood down by your
1 March 2020 employer or if you are re-hired by that employer.

I AM A CASUAL WORKER. AM I ELIGIBLE TO RECEIVE THE PAYMENT?

You are eligible for the payment if you have been with your employer for 12 months at 1 March 2020 on a
regular and systematic basis. Apart from this, casual employees are not eligible for the JobKeeper Payment.
If you are ineligible for the JobKeeper Payment, you may be able to apply for support through Services
Australia depending on your personal circumstances.

I AM ON A FIXED TERM CONTRACT WITH MY EMPLOYER. AM I ELIGIBLE TO RECEIVE THE
PAYMENT?

Fixed term contractors are eligible for the payment if you were employed at 1 March 2020 and meet the
other eligibility criteria for the JobKeeper Payment.

I HAVE MULTIPLE EMPLOYERS. WILL I RECEIVE MULTIPLE PAYMENTS?

No. Every employee is only able to receive one payment from one employer, their primary employer. Your
employers who have elected to participate in the JobKeeper Payment scheme may ask you to indicate
whether they are your primary employer. If you are employed by more than one employer, you should
contact your employers and indicate to them which is your primary employer.
The ATO will provide guidance on how to determine your primary employer.
You can continue to receive non-JobKeeper supported income from your non-primary employer.

I AM A CASUAL EMPLOYEE AND THE BUSINESS OWNER CHANGED WITHIN THE LAST
12 MONTHS. AM I ELIGIBLE?

You may still be eligible if you have been working for the business for at least 12 months as at
1 March 2020 on a regular and system basis, even if the entity operating the business has changed recently.
Your current employer will need to assess whether you meet this test.

I AM WORKING IN AUSTRALIA ON A TEMPORARY VISA. AM I ELIGIBLE?

To be eligible for the JobKeeper Payment, an employee must be an Australian citizen, the holder of a
permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.

I WAS WORKING IN AUSTRALIA ON 1 MARCH. I HAVE BEEN STOOD DOWN, AND RETURNED
TO MY HOME COUNTRY. AM I ELIGIBLE?

You may be eligible to receive the payment if you are an Australian citizen, the holder of a permanent visa,
or a Special Category (Subclass 444) Visa Holder who has temporarily left the country. You will be eligible
for the payment if you are a resident of Australia for tax purposes and if you have been stood down from
work, or if your former employer re-employs you. If you have ceased employment, and are not rehired, you
will not be eligible for the payment.

I AM 15 YEARS OLD AND, APART FROM AGE, I MEET THE ELIGIBILITY CRITERIA. AM I
ELIGIBLE FOR THE JOBKEEPER PAYMENT WHEN I TURN 16 LATER IN THE YEAR?

No. Employees must be at least 16 years of age on 1 March 2020 to be eligible.

I AM ON UNPAID OR PAID LEAVE. WILL I RECEIVE THE PAYMENT?

Yes, unless you are in receipt of Government Paid Parental Leave or Dad and Partner Pay. If you are an
eligible employee and your employer is an eligible employer, they will receive the payment whether you
are working, on leave, or have been stood down.

I AM NOT ELIGIBLE FOR THE JOBKEEPER PAYMENT. WHAT SUPPORT CAN I GET FROM THE
GOVERNMENT?

If you are not an eligible employee, you may be able to access income support through Services Australia.
More information is available on the Services Australia website at servicesaustralia.gov.au/individuals.

I AM RECEIVING WORKERS COMPENSATION. AM I ELIGIBLE?

If you are still working — such as reduced hours — then you will be eligible to receive the JobKeeper
Payment. However, if you are not currently working due to incapacity and you are being supported through
workers’ compensation arrangements then you will not be eligible for the JobKeeper Payment.

I AM RECEIVING PARENTAL LEAVE PAY OR DAD AND PARTNER PAY THROUGH SERVICES
AUSTRALIA. AM I ELIGIBLE?

For the period that you are receiving Parental Leave Pay or Dad and Partner Pay then you will not be
eligible for the JobKeeper Payment.

I CURRENTLY HAVE A SALARY SACRIFICE ARRANGEMENT WITH MY EMPLOYER. CAN IT
CONTINUE?

Yes. The JobKeeper payment may be paid to an employee in cash or as a fringe benefit or extra
superannuation contribution where the employee and employer agree.

Self-employed and other eligible businesses

I AM SELF-EMPLOYED. AM I ELIGIBLE FOR THE PAYMENT?

Yes. People who are self-employed will be eligible for the payment provided, at the time of applying, they:
• estimate their turnover has or will fall by 30 per cent or more;
• had an ABN on or before 12 March 2020, and
– either had an amount included in its assessable income for the 2018-19 year and it was included
in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by
the Commissioner), or
– made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to
the Commissioner on or before 12 March 2020 (or such later time as allowed by the
Commissioner);
• were actively engaged in the business;
• are not entitled to another JobKeeper Payment (either a nominated business participant of another
business or as an eligible employee);
• were aged at least 16 years of age as at 1 March 2020; and
• were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa
Holder at 1 March 2020.

MY BUSINESS IS A PARTNERSHIP. CAN EACH PARTNER RECEIVE A JOBKEEPER PAYMENT?

No. Only one partner can be nominated to receive a JobKeeper Payment along with any eligible employees,
noting a partner cannot be an employee.

CAN TRUSTS RECEIVE THE JOBKEEPER PAYMENT?

Trusts can receive JobKeeper payments for any eligible employees. Where beneficiaries of a trust only
receive distributions, rather than being paid salary and wages for work done, one individual beneficiary
(that is, not a corporate beneficiary) can be nominated to receive the JobKeeper Payment.

I AM A COMPANY DIRECTOR THAT RECEIVES DIRECTOR FEES. AM I ELIGIBLE?

An eligible business can nominate only one director to receive the payment, as well as any eligible
employees. Only one person in a director capacity may receive the payment and that individual may not
receive the payment as an employee.

I AM PAID AS A SHAREHOLDER. AM I ELIGIBLE?

An eligible business that pays shareholders that provide labour in the form of dividends will only be able to
nominate one shareholder to receive the JobKeeper Payment.

I RECEIVE RENTAL INCOME AS A LANDLORD BUT AM NOT REGISTERED AS A BUSINESS. AM I
ELIGIBLE?

No. Only businesses with employees or self-employed people are eligible for the JobKeeper Payment.

I AM SELF-EMPLOYED. HOW CAN I APPLY FOR THE JOBKEEPER PAYMENT?

The ATO will administer the program with an online application process. You may be asked to provide your
ABN and a single Tax File Number for the eligible recipient of the JobKeeper Payment, and a declaration of
business activity.

I AM SELF-EMPLOYED AND ALSO HAVE A JOB. AM I ELIGIBLE FOR THE JOBKEEPER
PAYMENT?

An individual can only receive JobKeeper Payments from one source. However, if you are eligible for a
JobKeeper Payment, you can also receive income from other sources including another job.
Other programs

WILL THE JOBKEEPER PAYMENT BE INCLUDED IN MY CHILD SUPPORT ASSESSMENT?

The JobKeeper Payment is included in adjusted taxable income. Parents should continue to report any
change to their income or wages as they normally would. A key principle of the child support scheme is that
children are supported by their parents in accordance with their financial capacity to do so.

CAN EMPLOYERS RECEIVE BOTH THE JOBKEEPER PAYMENT AND THE SUPPORTING
APPRENTICES AND TRAINEES WAGE SUBSIDY?

Eligible small businesses can receive the 50 per cent wage subsidy for apprentices and trainees in the
Supporting Apprentices and Trainees measure from 1 January to 31 March 2020, and the JobKeeper
Payment. Where small businesses receive the JobKeeper Payment, they are not eligible to receive the
apprentice and trainee wage subsidy from 1 April 2020 onwards.
Further information on the Supporting Apprentices and Trainees measure is available on the Treasury
website at treasury.gov.au/coronavirus/businesses.

Compliance

WHAT WILL BE DONE TO ENSURE COMPLIANCE?

This program will be subject to ATO compliance and audit activities. There will be a positive obligation on
employers to establish their eligibility and that of their employees. In addition, the ATO will cross-check
payments with Services Australia data, and data from other government agencies, and undertake activities
designed to identify multiple or ineligible payments to individuals.

WHAT IS THE GOVERNMENT GOING TO DO TO ENSURE COMPANIES DON’T MANIPULATE
THEIR TURNOVER TO ENSURE THEY QUALIFY?

The ATO will provide guidance to help businesses self-assess their eligibility. This will include for
circumstances that do not fit neatly into more general circumstances that the majority of businesses are in.
The Government will include appropriate integrity rules to prevent employers from entering into artificial
schemes in order to get inappropriate access to payments.
There are serious consequences, including large penalties and possible imprisonment, for those trying to
illegally get benefits under the scheme.

WHAT IMPACT DOES THE JOBKEEPER PAYMENT HAVE ON WORKPLACE ENTITLEMENTS AND
OBLIGATIONS?

Employers must continue to comply with their obligations in the Fair Work Act. The JobKeeper Payment
does not remove any workplace protections for employees. Enforcement in relation to Fair Work
entitlements will continue to sit with the Fair Work Ombudsman.
Enforcement and compliance to ensure the JobKeeper Payment is passed on to employees will be done by
the ATO.

Jobseekers PDF

Last updated: 5 April 2020

JOBKEEPER PAYMENT — INFORMATION FOR EMPLOYERS

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.

Not-for-profit entities (including charities) and self-employed individuals (businesses without employees)
that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.

ELIGIBLE EMPLOYEES

Eligible employees are employees who:

  • are currently employed by the eligible employer (including those stood down or re-hired);
  • were employed by the employer at 1 March 2020;
  • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than
    12 months as at 1 March 2020);
  • are at least 16 years of age;
  • are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a
    non-protected Special Category Visa Holder who has been residing continually in Australia for 10
    years or more, or a Special Category (Subclass 444) Visa Holder; and
  • are not in receipt of a JobKeeper Payment from another employer.

If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from
Services Australia as they must report their JobKeeper Payment as income.

APPLICATION PROCESS

BUSINESSES WITH EMPLOYEES

Initially, employers can register their interest in applying for the JobKeeper Payment via ato.gov.au from
30 March 2020.

Subsequently, eligible employers will be able to apply for the scheme by means of an online application.
The first payment will be received by employers from the ATO in the first week of May.

Eligible employers will need to identify eligible employees for JobKeeper Payments and must provide
monthly updates to the ATO.

Participating employers will be required to ensure eligible employees will receive, at a minimum,
$1,500 per fortnight, before tax.

It will be up to the employer if they want to pay superannuation on any additional wage paid because of
the JobKeeper Payment.

Further details for businesses for employees will be provided on ato.gov.au.

BUSINESSES WITHOUT EMPLOYEES

Businesses without employees, such as the self-employed, can register their interest in applying for
JobKeeper Payment via ato.gov.au from 30 March 2020.

Businesses without employees will need to provide an ABN for their business, nominate an individual to
receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent
business activity.

People who are self-employed will need to provide a monthly update to the ATO to declare their continued
eligibility for the payments. Payment will be made monthly to the individual’s bank account.

Further details for the self-employed will be provided on ato.gov.au.

Employer with employees on different wages

Adam owns a real estate business with two employees. The business is still operating at this stage but
Adam expects that turnover will decline by more than 30 per cent in the coming months. The
employees are:

  •  Anne, who is a permanent full-time employee on a salary of $3,000 per fortnight before tax and
    who continues working for the business; and
  • Nick, who is a permanent part-time employee on a salary of $1,000 per fortnight before tax and
    who continues working for the business.

Adam is eligible to receive the JobKeeper Payment for each employee, which would have the following
benefits for the business and its employees:

  • The business continues to pay Anne her full-time salary of $3,000 per fortnight before tax, and the
    business will receive $1,500 per fortnight from the JobKeeper Payment to subsidise the cost of
    Anne’s salary and will continue paying the superannuation guarantee on Anne’s income;
    Last updated: 30 March 2020 3
  • The business continues to pay Nick his $1,000 per fortnight before tax salary and an additional
    $500 per fortnight before tax, totalling $1,500 per fortnight before tax. The business receives
    $1,500 per fortnight before tax from the JobKeeper Payment which will subsidise the cost of Nick’s
    salary. The business must continue to pay the superannuation guarantee on the
    $1,000 per fortnight of wages that Nick is earning. The business has the option of choosing to pay
    superannuation on the additional $500 (before tax) paid to Nick under the JobKeeper Payment.


Adam can register his initial interest in the scheme from 30 March 2020, followed subsequently by an
application to ATO with details about his eligible employees. In addition, Adam is required to advise his
employees that he has nominated them as eligible employees to receive the payment. Adam will provide
information to the ATO on a monthly basis and receive the payment monthly in arrears.

Employer with employees who have been stood down without pay

Zahrah runs a beauty salon in Melbourne. Ordinarily, she employs three permanent part-time
beauticians, but the government directive that beauty salons can no longer operate has required her to
shut the business. As such she has been forced to stand down her three beauticians without pay.

Zahrah’s turnover will decline by more than 30 per cent, so she is eligible to apply for the JobKeeper
Payment for each employee, and pass on $1,500 per fortnight before tax to each of her three beauticians
for up to six months. Zahrah will maintain the connection to her employees, and be in a position to
quickly resume her operations.

Zahrah is required to advise her employees that she has nominated them as eligible employees to
receive the payment. It is up to Zahrah whether she wants to pay superannuation on the additional
income paid because of the JobKeeper Payment.

If Zahrah’s employees have already started receiving income support payments like the JobSeeker
Payment when they receive the JobKeeper Payment, they will need to advise Services Australia of their new income.

JobKeeper Payment – Information for employers

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