Summary
The JobKeeper payment is open to eligible employers to enable them to pay the salary or wages of at least $1,500 (before tax) per fortnight for eligible employees.
Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.
Employers will need to pay 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. The first payments to eligible employers will commence in the first week of May 2020 (but may take up to two weeks after this date). JobKeeper payments can be made for the period beginning 30 March 2020.
If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment. The first fortnight is from 30 March – 12 April and each JobKeeper fortnight follows after that.
This will continue until the end of the scheme, which is scheduled for 6 months after commencement.
Key considerations
Payments from the ATO back to the business under this scheme will not start until the first two weeks in May. This lag time in repayments will continue throughout the course of the scheme. Employers must bear this in mind in determining whether they wish to participate in the scheme. We strongly recommend you speak to your accountant and/or your bank to consider options to assist in managing cash flow while operating the scheme.
Participation in the scheme is based on a “one-in all-in” requirement. Accordingly, if the business wishes to receive the benefits of the wage subsidy in respect of employees that are currently still working (or taking accrued leave), then it must opt in to the scheme in respect of all eligible employees (including employees who have been stood down but remain employed). The benefits of the scheme may be limited in circumstances where no employees are actively engaged at the time but will likely increase at a future point when trading restrictions are eased and you look to re-engage your labour force that has been stood down.
You do not need to opt in to the scheme immediately. You can do so at any point in the course of the six-month period of operation of the scheme. For those employers for whom the scheme is not a viable option at the present time, this may be a relevant consideration in terms of delaying participation in the scheme. Again, we recommend you seek professional financial advice around the viability of participating in the scheme, whether that is commencing immediately or at some later date.
Subject to eligibility requirements, you may be eligible as a business owner/operator/sole trader – you are potentially eligible to claim up to $19,500 over the six months of the scheme.
notifying employees
You should explain to employees that participation in the scheme is subject to meeting a range of eligibility criteria and this will be determined in the coming weeks. Employees will also need to complete the JobKeeper employee nomination notice and return it to you.
These templates can be used to communicate with employees:
payment schedule
The following sets out the relevant payment periods and minimum amounts payable per employee under the scheme:
By 14 May $3,000 (for fortnights starting 30 March and 13 April)
By 14 June $3,000 (for fortnights starting 27 April and 11 May)
By 14 July $3,000 (for fortnights starting 25 May and 8 June)
By 14 August $3,000 (for fortnights starting 22 June and 6 July)
By 14 September $4,500 (for fortnights starting 20 July, 3 August and 17 August)
By 14 October $3,000 (for fortnights starting 31 August and 14 September)