Jobkeeper payments will comprise of a payment of $1,500 per fortnight, for each eligible employee, for a maximum of six months from 30 March 2020. Eligible businesses can be structured as sole-traders, partnerships, trusts or companies.
To be eligible for JobKeeper payments, the business must show that:
To be eligible for JobKeeper payments, the employees must show that they are:
Businesses can register their interest in applying for the JobKeeper payment via ato.gov.au from 30 March 2020. Upon the scheme being made available for registration, eligible businesses can apply for it via an online application.
It is expected that data submitted via Single Touch Payroll will be used to pre-populate the form. The first payment should be received from the ATO in the first week of May 2020, paid in arrears, and backdated to 30 March 2020.
Eligible businesses must identify eligible employees and provide monthly updates to the ATO. All eligible employees must receive, at a minimum, the amount of $1,500 per fortnight, before tax. The payment will be taxed as ordinary income in the hands of the recipient, and it will be up to the business if they want to pay superannuation on any additional wage paid because of the JobKeeper payment.
Eligible employees currently receiving the previously announced JobSeeker payments will not be allowed to also access the JobKeeper payments.
Sole traders are specifically included in the scheme, which may lend a lifeline to smaller businesses.
Self-employed businesses can likewise register their interest in applying for the JobKeeper payment via ato.gov.au from 30 March 2020. They will be required to provide their ABN for their business, nominate an individual to receive the payment. The nominated individual must provide his/her TFN and provide a declaration to recent business activity.
Self-employed businesses will have to declare their continued eligibility for the payments, through a monthly update to the ATO. Payments will be made monthly to the nominated individual’s bank account.
From a legal perspective, company directors, even though they control the company, more often than not are considered employees of the company and should be eligible to receive the JobKeeper payment subsidy to their wages.
Partners in a partnership, on the other hand, are not employees, but still should be able to apply for the payments as a self-employed business.
Source: Walters Kluwer