JobKeeper Allowance

Latest updates on ‘JobKeeper’

If you’ve enrolled for the JobKeeper Payment it is time to identify yourself or your eligible employees. If you’re a sole trader with no employees you still need to take this step.

The JobKeeper is paid to the employer or nominate business participant. The ATO does not make payments directly to employees.

Enrolment for April and May closes on 31 May 2020.

We can assist you with this process and provide assistance through the continues turnover monthly reporting requirements by the Australian Taxation Office.


What is JobKeeper?

Under the $130 billion plan, which was announced in April, businesses impacted by the coronavirus will be given the fortnightly wage subsidy to help pay their employee’s wages for at least six months.

Eligible businesses will receive $1,500 per employee per fortnight, which they must pay to eligible employees. There will be a legal obligation to ensure businesses pass on the full wage subsidy to eligible employees. The ATO has released a guide for employers for more details on eligibility requirements.


Eligibility for JobKeeper payment

Employees who are eligible to receive the $1,500 fortnightly payments include:

  • Full-time workers
  • Part-time workers
  • Sole traders
  • Casuals who have been with their employer for at least 12 months
  • New Zealanders on 444 visas
  • Not-for-profit entities

From today, those who are eligible for the wage subsidy will be able to apply to the Australian Tax Office (ATO) via the ATO’s JobKeeper page which means that employers and employees will not have to deal with Centrelink to access the funds.

The fortnightly $1,500 payment will start to be issued from May 1 and will be backdated to today.

If employees have been stood down by their employer since March 1, they are still eligible for these payments. To be eligible, their payments will need to have fallen by 30% or more.

The subsidy is around 70% of the median wage, and 100% of the median wage in the most heavily hit sectors like retail and hospitality.

Sole traders and some other entities (for example partnerships, trusts or companies) may be also entitled to JobKeeper payment under the business participation entitlement.


Business participants might be eligible if:

  • have a non-employee individual who is actively engaged in the operation of the business (at 1 March 2020 and for the fortnight you are claiming)
  • they are an individual not employed by your entity.
  • They are:
    • a sole trader
    • a partner in the partnership
    • an adult beneficiary of the trust
    • a shareholder or director in the company.
  • aged at least 16 (or 18 years or over if a beneficiary in the case of a trust)
  • an Australian resident

The $130b wage subsidy is expected to last for six months for an estimated six million Australians whose livelihoods have been impacted by the coronavirus pandemic.


For further details please read the followinghttps://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business/jobkeeper-payment

Jobkeeper Payment – Information for Employers – PDF