Skip to content

  • Home
  • COVID-19 Guide
  • COVID-19 AV library
  • Client results
  • Expertise
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Blog / COVID-19: Recommendations and considerations / JobKeeper payments: wage relief and support for businesses
COVID-19: Recommendations and considerationsCOVID-19: Recommendations and considerations 31 March 2020

JobKeeper payments: wage relief and support for businesses

The Australian Government is offering wage subsidies to help employers retain their employees during the COVID-19 pandemic, and keep employees engaged until the inevitable rebound.

Wage relief

Eligible businesses (including not-for-profits) who elect to participate in the scheme can expect a wage subsidy of $1,500 per fortnight per eligible employee. The JobKeeper payment is a flat rate regardless of a person’s salary. An employer will continue to receive the JobKeeper payment for each employee while they remain employed. Eligible sole traders will also receive a single payment of $1,500 per fortnight.

How it will work

Eligible employees whose wages are at least $1,500 per fortnight before tax, will continue to receive their pay as normal. The JobKeeper payment will assist the employer to subsidise all or part of the employee’s income.

If an employee usually receives less than $1,500 in income per fortnight before tax, their employer must pay their employee at least $1,500 per fortnight, before tax (regardless of whether the person is working or stood down). Superannuation on the amount that is the difference between an employee’s usual fortnightly income, and the JobKeeper payment, is a discretionary matter for the employer.

The JobKeeper payments will also apply in relation to those employees who were employed on 1 March 2020, subsequently ceased employment, and then were re-employed by the same employer.

Eligible businesses

Under the proposed fiscal package, businesses will be eligible for the subsidy if their:

  • turnover is less than $1 billion and will be reduced by more than 30% relative to a comparable period a year ago (of at least a month); or
  • turnover is $1 billion or more and will be reduced by more than 50% relative to a comparable period a year ago (of at least a month); and
  • the business is not subject to the ‘Major Bank Levy’ (currently ANZ, Commonwealth, NAB, Macquarie and Westpac only).

Eligibility for employees

Employees will be eligible if they are:

  • at least 16 years of age and was employed by the employer as of 1 March 2020;
  • full-time, part-time, or a long-term casual (a casual employed on a regular basis for over 12 months as at 1 March 2020);
  • not receiving the JobKeeper payment from another employer; and
  • an Australian citizen, the holder of a permanent visa, or any other relevant visa (Subclass 444 visa holder, protected special category visa holder, or a non-protected special category visa holder residing continually in Australia for 10 years or more).

What’s next

Employers should familiarise themselves with these new measures as well as the relevant legislation, once it has been passed by the Federal Parliament, likely early next month.

In the interim, businesses can register their interest in the scheme via the ATO’s website, or wait to apply on-line.  Information required by the ATO will include revenue information (declaration of recent business activity), ABN and eligible employee details.

For further information on any of the issues in this article, and other workforce measures available to employers because of the effects of COVID-19, please contact our team below.

Thanks to Jessica Rose and Bianca Banchetti for their assistance in preparing this article.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

  • Mick Moy

    Partner
  • Tim Longwill

    Partner
  • Cameron Dean

    Partner
  • Scarlet Reid

    Partner
  • Lydia Daly

    Partner

In other news

New Industrial Relations Laws – What it means for you

22 December 2020Insight

Payment Times Reporting Scheme

21 December 2020Insight

Australian Government proposes new broadcaster’s licence and forced investment quotas in Media Reform Green Paper

14 December 2020Insight

Verification of identity – does it always need to be in person?

6 December 2020Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

Contact form

We handle your personal information in accordance with our privacy policy.

sydney

Level 32, MLC Centre
19 Martin Place
Sydney NSW 2000
GPO Box 462
Sydney NSW 2001

Tel +61 2 8241 5600
Fax +61 2 8241 5699

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

melbourne

Level 27, 101 Collins Street
Melbourne VIC 3000
GPO Box 2924
Melbourne VIC 3001

Tel +61 3 9067 3100
Fax +61 3 9067 3199

 

GET IN TOUCH

Contact form

We handle your personal information in accordance with our privacy policy.

follow us

CLIENT LOGIN

newcastle

Level 2, 16 Telford Street
Newcastle NSW 2300
PO Box 394
Newcastle NSW 2300

Tel +61 2 4914 6900
Fax +61 2 4914 6999

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

canberra

Level 9, 2 Phillip Law Street
Canberra ACT 2601

Tel +61 2 6243 3699
Fax +61 2 8241 5699

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

© 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Credit Reporting Policy

X