JobKeeper Payment Package
As the Australian governments at both federal and state level imposed stricter mitigation measures to slow the spread of the coronavirus (COVID-19) in recent weeks, most businesses particularly those in the tourism, hospitality and retail industries have been hard hit resulting in substantial job losses and retrenched workers across the country.
To strengthen the Australian economy’s ability to withstand the significant economic impacts of COVID-19, on 30 March 2020, the Australian federal government announced its third set of stimulus measure, namely the $130 billion JobKeeper (Wage Subsidy) Payment which brings the total stimulus packages announced to date to $320 billion (i.e. 16.4% of annual GDP).
The Coronavirus Economic Response Package (Payments and Benefits) Bill 2020 was swiftly passed by both Houses of Parliament and received royal assent on 9 April 2020. The Act establishes a framework for the Treasury to make rules by legislative instrument for JobKeeper Payment to be administered by the Commissioner which would allow flexibility in payment arrangements and necessary changes be made quickly to respond appropriately to the economic impacts of COVID-19.
According to the Treasury’s Rules (“Rules”), the key eligibility requirements and administration processes are as follows:
Note: once it satisfies the basic test, it does not need to retest its turnover in later months.
To be an eligible employee:
For self-employed businesses, business owners who are not employees can also receive JobKeeper Payment subject to satisfaction of the following additional conditions (under Division 3 of the Rules):
To be an eligible business participant, the individual:
- If the business entity is a sole trader, the individual must be that entity;
- If partnership, the individual must be a partner in the partnership;
- If trust, the individual must be an adult beneficiary of the trust; or
- If company, either a director or shareholder of the company;
To apply, the eligible employer must:
If you have any questions, please do not hesitate to contact one of our partners (Mark, Greg and Justin) or our tax director (Melanie).