• Newhaven Group

JobKeeper Program Payment Details

Below are details we have assembled for regarding the JobKeeper wage subsidy payments announced yesterday by the Australian government.

JobKeeper Program Payments

What is available?

A direct payment from the ATO to businesses to reimburse a flat $1,500 per fortnight per employee for a six month period. Employees counted will be those on your payroll from March 1 2020. The payments will be available to sole traders also.

How do I register?

The subsidy will begin 30 March with the first payments to be received by employers in the first week of May. May’s payment will pay your business the subsidy in arrears (reimbursement) for the period of 30 March to 1 May.

Businesses will be able to register their interest in participating in the Payment from 30 March 2020 on the ATO website. You can submit your interest here https://www.ato.gov.au/Job-keeper-payment/

Employers must elect to participate in the scheme.

You will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in your business turnover of at least 30%.

Eligibility

Employers (including non-for-profits) will be eligible for the subsidy if their business has a turnover of 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). If over $1 billion then a 50% reduction

Self-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30 per cent decline in turnover relative to a comparable prior period (of at least a month).

Staff terminated after March 1 and before 30 March 2020 can be reinstated on your payroll and receive the subsidy payment. Staff stood down but not terminated are to also receive the payment.

Where staff remain on your business payroll they can and should, where possible, receive their full salary where that salary is above the $1,500 per fortnight subsidy payment. The subsidy is in place to help business reduce their payroll costs not to replace salaries of staff in full. The government have referred to the payment as a ‘top up’.

If your business cannot afford to pay staff anything above the subsidy, you will need to make arrangements with your staff to work for the subsidy payment only effectively agreeing to a pay cut for the duration of the current shutdown.

Reporting

Employers must report the number of eligible employees employed by the business on a monthly basis.

Refer to the fact sheet for full information https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_supporting_businesses_1.pdf

We are standing by ready to assist with your questions and help you provide the necessary information to the ATO to participate in this and other government support programs.

Newhaven Group
p: + 61 3 8692 5888

f:  + 61 3 8692 5889

enquiry@newhavengroup.com.au
 

Newhaven Accounting
p: + 61 3 8692 5892

f:  + 61 3 8692 5889

admin@newhavenaccounting.com.au

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