The JobKeeper Payment

On 8 April 2020, the Federal Government passed a package of Bills through both Houses of Parliament (which received Royal Assent on 9 April 2020) to give effect to (amongst other things) the JobKeeper Scheme. Subsequent to this, a Legislative Instrument was released by the Treasurer containing the detailed rules of the JobKeeper Payment.

Refer to the Coronavirus Economic Response Package Payments and Benefits) Act 2020, the Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020 and the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (being the Legislative Instrument released by the Treasurer).

Following is a broad summary of the key aspects of the JobKeeper Payment, based on the above package of Bills, the Treasurer’s Legislative Instrument and updated information currently available on the Treasury website (refer to https://treasury.gov.au/coronavirus/jobkeeper)

What is the JobKeeper Payment?

The JobKeeper Payment is a wage subsidy that will be paid through the tax system (i.e., it will be administered by the ATO) to eligible businesses impacted by the Coronavirus.

Under the scheme, eligible businesses will receive a payment of $1,500 per fortnight per eligible employee and/or for one eligible business participant (i.e., an eligible sole trader, partner, company director or shareholder or trust beneficiary).

The subsidy will be paid for a maximum period of six months (i.e., from 30 March 2020 up until 27 September 2020). It will be paid to eligible businesses monthly in arrears, with the first payments to employers commencing from the first week of May 2020.

The JobKeeper Payment will ensure that eligible employees (and, where applicable, eligible business participants) receive a gross payment (i.e., before tax) of at least $1,500 per fortnight for the duration of the scheme.

 

 

 

 

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