JobKeeper FAQs

The JobKeeper Payment is being delivered by the Australian Tax Office (ATO). Businesses will need to register for the wage subsidy by either getting in contact with the ATO or by visiting their website. Given that the payment was announced on the 30 March 2020, CCIQ acknowledges that the specific questions that you seek mightn’t be available at present. Regardless, we urge that you register your interest with the ATO as a priority rather than waiting for the answers to your specific questions. For more information, please use the resources listed below:

Important Information:

Register for the JobKeeper Payment here
Contact the ATO business support line with any specific question on 13 28 61
Review the ‘JobKeeper Payment’ Government fact sheet here
Review CCIQ’s ‘JobKeeper Payment’ summary here

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Clarifying eligible employees

Eligible employees are defined as those who:

Are currently employed, including those that may have been stood down or re-hired (i.e. actively engaged under a working contract with the business)
Were employed by the employer as at 1 March 2020;
Are employed on a full-time, part-time or long-term casual basis (a casual employee that has been employed regularly for longer than 12 months);
Are at least 16 years of age;
Are an Australian citizen, holders of a permanent or special visa (see the full list here); and
Are not in receipt of a JobKeeper Payment from another employer.

1) Will casual staff qualify for the JobKeeper Payment?

Yes, casual workers will be eligible for the JobKeeper Payment if they have been employed for longer than 12 months. Additional eligibility criteria are listed above.

2) Will apprentices and trainees qualify for the JobKeeper Payment?

The wages of apprentices and trainees have already been subsidised under the ‘Apprentice Wage Subsidy’ scheme (see information here). Whether or not the employee will be eligible for further support will be determined by the ATO.

3) How will the JobKeeper Payment benefit businesses that hire self-employed contractors?

Self-employed contractors will not be considered as an eligible employee under the JobKeeper Payment scheme. In such circumstances, it would be advisable for the contractor to seek out other small business stimuli, or seek welfare assistance.

Support for non-employing businesses

“Businesses without employees, such as the self-employed, can register their interest in applying for JobKeeper Payment via ato.gov.au from 30 March 2020. Businesses without employees will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent business activity. Self-employed people will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account.

1) Will this be available for sole traders?

For sole traders paying themselves a wage/salary, the ATO has asked that you register your interest for the JobKeeper Payment. CCIQ is awaiting further comfort regarding micro-business support under the current scheme.

Foreign employees

Included in the eligible employee description were Australian citizens and holders of permanent or special visas. In more detail, this includes:

Australian citizens;
Holders of a permanent visa;
Holders of a Protected Special Category Visa;
Holders of a non-protected Special Category Visa Holder who has been residing continually in Australia for ten years or more; or
a holder of a Special Category (Subclass 444) Visa

1) Will employees from New Zealand or overseas be eligible for the JobKeeper Payment?

Employees that are foreign citizens, and who do not hold special visas will not be eligible for the JobKeeper Payment.

Treatment of taxation and superannuation

“Participating employers will be required to ensure eligible employees receive, at a minimum, $1,500 per fortnight, before tax. It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.”

1) Are you required to make superannuation payments while receiving the JobKeeper Payment?

Businesses that continue to operate will be required to meet the superannuation guarantee on the employee’s standard salary. Any additional payment made to employees up to the $1,500 p/f minimum will not require superannuation to be paid.

Also, for non-essential businesses that are forced to close (all staff stood down), no superannuation will need to be paid on the minimum $1,500 p/f payment.

If this is still unclear, the Government fact sheet provides case studies for the treatment of the JobKeeper Payment and employee superannuation entitlements.

2) Will I have to withhold tax

It is anticipated that employers will be able to withhold tax from the credited gross subsidy ($1,500 before tax).

Evidencing slowing turnover (year on year)

Businesses will need to evidence a 30 or 50% reduction in turnover during a comparable period of at least one month (year on year).

Businesses with turnovers of less than $1 billion will need to evidence a 30% reduction year on year. Otherwise, businesses with a turnover greater than $1 billion will be required to evidence a 50% reduction year on year.

1) How will businesses evidence a 30 or 50% slowdown in business turnover?

Businesses will need to show a comparable period of at least one month which highlights the significant reduction in turnover as a result of the Covid-19 event.

2) How will recent start-ups that have experienced significant growth in the later months of 2019 evidence turnover declines?

Businesses that are unable to show a year on year reduction (e.g. comparing February 2019 with February 2020) are urged to contact the ATO for further support.

Employees typically earning less than $1,500 per fortnight

“For employees that were already receiving this amount ($1,500 p.f.) from the employer, then their income will not change. For employees that have been receiving less than this amount, the employer will need to top up the payment to the employee up to $1,500, before tax. And for those employees earning more than this amount, the employer can provide them with a top-up.”

1) Will businesses be forced to pay the full $1,500 to their employees?

Businesses will be required to ensure that each eligible employee receives a minimum of $1,500 per fortnight.

For employees that are actively employed, and earning a salary greater than $1,500 per fortnight, the JobKeeper Payment will be available to subsidise (up to $1,500) the difference.

2) If staff were earning less than $1,500 p/f before the Covid-19 event, do businesses still have to pay the full $1,500?

Yes, businesses will be obligated to ensure that each eligible employee receives a minimum gross payment of $1,500 per fortnight.

3) If casual employees are actively working, but have experienced a reduction in hours, how will the payment be treated?

The payment will be implemented to subsidise the reduced income up to a minimum of $1,500 per fortnight.

4) What are the benefits of providing additional income to employees that otherwise would not be earning $1,500 p/f?

The benefits of providing additional income to employees that would otherwise earn less than $1,500 are to encourage spending in the economy. It has been shown that low-income individuals are more likely to sp