JobKeeper Eligibility for Employers

Under the new JobKeeper Payment, businesses can now access a subsidy from the government. Affected businesses will be able to claim $1,500 per fortnight per eligible employee from 30 March 2020 until 27 September 2020.

Are you an eligible employer?

Employers (including not-for-profits) will be eligible for the subsidy if:

• their business has an aggregated turnover of less than $1 billion (for income tax purposes) and they estimate their GST turnover has fallen or will likely fall by 30 per cent or more; or

• their business has an aggregated turnover of $1 billion or more (for income tax purposes) and they estimate their GST turnover has fallen or will likely fall by 50 per cent or more; and

• their business is not subject to the Major Bank Levy.

Alternative Test

For employers unable to use the text above, where for example they are a new business or their revenue is highly variable, the Tax Commissioner will have discretion to use alternative tests for specific circumstances.

Where the entity is new to business the alternative tests may apply:

• Comparing projected GST turnover of the business in the relevant 2020 period against the  average turnover since commencement of the business

• Comparing projected GST turnover of the business for the relevant 2020 period against the average turnover during the preceding 3-month period

There will be some tolerance where turnover falls slightly lower than estimated by the employer.

Payment, Timing and Superannuation

Eligible employers will be paid $1,500 per fortnight per eligible employee, provided the employee receives a minimum of the aforementioned amount.

Where an additional payment is made to the employee, e.g. if employee has been stood down or have had their hours reduced, no superannuation guarantee is required to be pay for that additional amount.

This article is for general information purposes only and should not be relied on as legal advice. For specific and up-to-date legal advice regarding your situation please contact a qualified lawyer.