JOBKEEPER PAYMENTS - COVID-19

The federal government will pay eligible employers $1,500 per fortnight for each eligible worker, about 70% of the national median wage.

JobKeeper is about $400 a fortnight more than the $1,100 Jobseeker payment with the coronavirus supplement for those out of work.

In order to receive a payment, both the employer and employee must meet eligibility criteria.

Eligible employers are businesses (including companies, partnerships, trusts and sole traders), not-for-profits and charities:

With a turnover of less than $1bn that have lost 30% or more of their revenue compared to a comparable period a year ago.

With a turnover of $1 billion or more and with at least a 50% reduction in revenue compared to a comparable period a year ago.

The big banks subject to the banking levy are not eligible.

Were employed by an eligible employer at 1 March 2020

Can be sole traders, full-time, part-time, or long-term casuals employed on a regular basis for longer than 12 months as at 1 March 2020.

Are at least 16 years of age.

Are an Australian citizen, the holder of a permanent visa, a protected special category visa, a non-protected special category visa who has been residing continually in Australia for 10 years or more, or a New Zealander on a special category (subclass 444) visa.

Eligible employers will be paid $1,500 per fortnight per eligible employee from 30 March 2020, for a maximum of six months.

Eligible employees will receive from their employers a minimum of $1,500 per fortnight, before tax. Employers are able to top up the payment.

Employers will pay employees as usual and payments will be made to the employer monthly in arrears by the Australian Tax Office.

If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay them, at a minimum, $1,500 per fortnight, before tax. It is therefore possible for a long-term casual or part-time worker to receive more than their ordinary pay.

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 also receive, at a minimum, $1,500 per fortnight, before tax.

The subsidy will start on 30 March, with the first payments to be received by employers in the first week of May. In the meantime, employers must continue paying their employees and then claim the money from the first week of May.

Businesses will be able to register their interest in participating in the payment from 30 March on the ATO website.

Employers must continue to pay the superannuation guarantee on regular wages but it is up to employer whether they pay superannuation on additional job keeper payments.

For example, a worker who ordinarily receives $1,000 a fortnight plus superannuation will receive the $1,500 JobKeeper payment, with superannuation paid on the first $1,000 and the employer able to decide whether to pay it on the last $500.

A person receiving the JobKeeper payment cannot also receive the JobSeeker payment (formerly Newstart). People who have already applied for JobSeeker can withdraw and shift to job keeper payments if they are re-engaged by their employer.

A person cannot be in receipt of JobKeeper payments from two or more employers.

Eligibility has been expanded. At the moment, under changes made on Monday 30/03/2020, people will be eligible for job-seeker payments unless their partner earns $79,762 or more.