JobKeeper Payments COVID-19

• Australian citizens, PRs, New Zealanders on 444 visas and not-for profits are eligible.

• For self-employed individuals and business owners impacted by COVID-19.

• Employees to check with your employer.

• This is not to generate extra cash for the business. Aim is to keep employees.

• Available to full-time, part-time workers and sole traders. Casuals who have been with their employer for 12 months.

• Employers/Self-employed need to have employees in their books from 1 March 2020. If retrenched during this time, can put them back in the books.

• Administered through the ATO (not Centrelink).

• Available to employees stood down from 1 March 2020.

• Employers and self-employed need to register your interest here.

• Gross $1,500 per fortnight to each employee (at least) through their employers for the next six months, even if you normally get paid less than this.

• Fair Work Act to provide further guidance on worker rights.

• Government legislation to pass this Wednesday. Need further guidance on details.

• Clarification needed around business structures, eg. Trusts, partnerships, start-ups without a track record of turnover, isolated events, cash basis V accruals basis on sales, directors/owners who do not draw a wage. eg. Trust distributions, dividends.

• Applies to businesses with turnover <$1 billion and falling by 30% to comparableperiod last year. For business with turnover >$1 billion and falling by 50%.

• Employers should be disclosing wages through BAS and Single Touch Payroll.

• Employer’s discretion to pay 9.5% for payments on top of this.

• Payments will flow from 1 May and backdated to today 30 March. Employers pay upfront now to employees.

• $1,500 is taxable income to the recipient and may affect Centrelink payments.

More guidance to come this week. Contact me if you would like to know how this applies to your circumstances.