Under this plan employers will receive a $1,500 per fortnight JobKeeper Payment for each eligible employee. The plan will also apply to self-employed individuals. 

❖ Snapshot of key components of the plan 

This is a snapshot of the key components of the plan 

• Eligible employers will be paid $1,500 per fortnight per eligible employee. Eligible self employed individuals will also be paid $1,500 per fortnight. 
• Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top-up the payment.  
• The scheme will run for 26 weeks (13 fortnights). 
• An employer or self-employed individual will be eligible for the subsidy: o if their turnover is 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) o if their turnover is more than $1 billion 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) 
• Employers must elect to participate in the scheme; there will be an application process. 
• Eligible employers will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer – including full-time, part time, long-term casuals and stood down employees. Casual employees eligible for the JobKeeper Payment are those employees who have been with their employer on a regular basis for at least the previous 12 months as at 1 March 2020. 
• To be eligible, an employee must be 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. 
• Where employers participate in the scheme, their employees will receive this payment as follows: o If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. o If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax. o If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax. o If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.

❖ Recommended resources 

Until the legislation is drafted there will be questions that we cannot answer. We strongly recommend you read the following resources prepared by the Government which provide greater detail on the scheme. 

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_supporting_businesses_4.pdf https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_1.pdf

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employees_1.pdf 

❖ How will the downturn in revenue be measured? 

 We do not know the answer to this question as this time. We need to wait until the legislation is drafted. 

❖ I am a working director and operate my business through a company [or trust] structure but I was not getting paid a salary as at 1 March 2020. Am I eligible for the subsidy? 

We do not know the answer to this question as this time. The available resources refer to employers and self-employed individuals being eligible for this scheme. An individual operating a business through a company [or trust] structure who is remunerated via dividends/distributions may not qualify as either an employee or self-employed. We need to see the legislation to understand how this issue is addressed.  

❖ Can I take any steps now to increase the subsidy my business receives? 

The payments you are eligible to receive under the scheme are based on eligible employees as at 1 March 2020. The Government will be using Single Touch Payroll information as the primary source of data to determine eligible employees. We strongly advise against any strategy to retrospectively increase employee numbers at 1 March 2020. 

OUR RECOMMENDATIONS 

We make the following recommendations: 

1. If you think there is any chance you may be eligible for the JobKeeper Payment you should register with the ATO immediately. Here is the link: https://www.ato.gov.au/general/gen/JobKeeper-payment/ 
2. Make sure your payroll records and STP lodgements are completely up to date.  
3. Consider if there any employees that you made redundant after 1 March 2020 that you would like to rehire. The subsidy would apply to these employees.