JobKeeper Payment Announcement – Quick Facts

Published: April 1, 2020

As you would be aware, the government announced an additional incentive to assist business’ during this time.  As the name suggests, the purpose of the measure is to keep your employees employed.

It is important to note that although the announcement has been made, no legislation has been passed, leaving accountants with more questions than answers!  We do however believe it is imperative that business owners are fully up to date, and taking in as much information as they can, as quickly as they can to  enable better business decisions.  We just ask for your patience until we receive the legislation we need to advice you appropriately.

Quick Facts:

In light of this, the below is a high level summary of the Jobseeker payment based on a Treasury fact sheet, for your information:
Government will provide a subsidy to employers of $1,500 per fortnight (before tax), for a maximum period of 6 months.

  • Eligible if your business turnover reduced by >30%
  • Eligible employees include:
    • Currently employed (including those stood down)
    • Were employed by the employer at 1 March 2020
    • Full-time, part-time, or long-term casuals (a casual employed for longer than 12 months as at 1 March 2020)
    • Are not in receipt of Jobkeeper payment from another employer
  • Self-employed individuals (sole traders) that meet the turnover test are also eligible to apply for JobKeeper payments
  • Payments will not start to flow until early May 2020

Application Process:

All eligible business’, including eligible self-employed individuals, need to register their interest now using the below link:

Click here to register your interest in JobKeeper Payment

You will then be prompted for further action at the appropriate time.

Tips: 

Whilst we await the legislation to be passed, we recommend the following action that can be taken in the meantime:

  • Seek professional advice when completing the BAS for the quarter ended 31 March 2020 to ensure your benefits are maximised, and you are clear on how the entitlements are going to impact on your business in the short term.
  • Keep yourself informed!
  • Start planning, including the preparation of a detailed expenditure budget for your business over the coming months.
  • Assess the cashflow implications on your business over the next month, factoring in these payments will not start to flow until May 2020/
  • Don’t be afraid to reach out to your accountant or business peers during this time for support.
  • Be kind to yourself.

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