The JobKeeper Payment is a scheme to support businesses and not-for-profit organisations significantly affected by COVID-19, to help keep more Australians in jobs. It is a wage subsidy, which means it is paid to your employer to help cover the cost of wages they have already paid to some employees.
JobKeeper rates
Before 28 September 2020, the amount of JobKeeper Payment your employer could receive for wages they paid to you was $1,500 per fortnight.
From 28 September 2020, the amount of JobKeeper Payment your employer can receive for wages they have paid to you is generally based on how many hours you worked (including paid leave or paid public holidays) in either of the following periods:
• the 4 weeks (28 days) of pay periods before 1 March 2020, or
• the 4 weeks (28 days) of pay periods before 1 July 2020.
If you worked 80 hours or more in the relevant period your employer will receive the higher tier 1 rate. If you worked fewer than 80 hours they will receive a lower tier 2 rate.
For employees
You do not claim the JobKeeper Payment as an emplopyee. If your employer is eligible, they can choose to apply. If you want to know if your employer is participating in the JobKeeper scheme, you need to ask your employer. Only your employer can give you this information.
Your employer may ask you to fill in an employee nomination form. They need you to complete a nomination form so that they can claim JobKeeper for wages they have paid to you. If you have more than one job, you can only nominate one employer. If one of your jobs is a casual job, you can only nominate your permanent employer and not your casual employer.
The JobKeeper payment is treated as income for the purposes of social security payments. If you’re receiving income support, you need to report the income you receive through the JobKeeper payment to Services Australia. This may make you ineligible for the JobSeeker payment or other income support payments.
For employers
The JobKeeper Extension now requires an entity to test their decline in turnover based on actual turnover rather than on projected turnover as required under the initial JobKeeper rules. The new actual turnover test will be based on two key quarterly periods – the September 2020 and December 2020 quarters compared to relevant prior period quarters.
In particular, for JobKeeper fortnights between 28 September 2020 and 3 January 2021 (Period 1), an entity must determine whether it has an actual decline in turnover for the September 2020 quarter compared to the prior September 2019 quarter and have met the relevant decline percentage – 15%, 30% or 50% depending on the type of entity as originally announced under the initial JobKeeper rules.
Similarly, for Period 2 covering JobKeeper fortnights between 4 January 2021 and 28 March 2021, an entity must determine whether it has an actual decline in turnover for the December 2020 quarter compared to the prior December 2019 quarter and have met the relevant decline percentage (15%, 30% or 50%).
Please note: The above is a brief guide only and there is some level of complexity on the operation of the JobKeeper rules, including various administrative reporting dates to be mindful of. For more information we encourage you to speak with a qualified tax professional.