Below is a summary guide of checking your eligibility and the process of the JobKeeper payment. First, you need to work out if you are eligible.
YOU ARE AN ELIGIBLE EMPLOYEE IF YOU:
- Are currently employed by the eligible employer (including if you are stood down or re-hired)
- Were a permanent FT or PT employee at 1 March 2020
- Long-term casual employee (employed for at least 12 months) as at 1 March 2020 and not a permanent employee of another employer
- Aged 16 years or older at 1 March 2020
- Australian resident, the holder of a permanent visa or a Special Category (Subclass 444) Visa Holder as at 1 March 2020
- Not in receipt of parental leave pay from the government or in receipt of worker’s compensation payments in respect of total incapacity for work
You must satisfy each of these requirements for the relevant JobKeeper fortnight from 30 March – 27 September 2020.
Important to note: If you started work with your current employer after 1 March 2020, your employer will not be eligible to claim the JobKeeper payment on your behalf.
IF YOU ARE NOMINATED BY YOUR EMPLOYER:
- It is optional for your employer to participate in the JobKeeper payment scheme. If they choose not to participate, you cannot be nominated by them.
- If they choose to participate, AND you are an eligible employee, you must tell your employer that you agree to be nominated as an eligible employee
- Complete the JobKeeper Employee Nomination Notice and give this to your employer by the end of April 2020
- Your employer will enrol and apply to receive the JobKeeper payment from the ATO, and pass this on to you in your usual pay. Note this is subject to tax and there is no super guarantee required to be paid on this by your employer.
IF YOU ARE ON A FIXED-TERM CONTRACT:
- You are eligible for the JobKeeper payment if you were employed at 1 March 2020 and meet the other eligibility criteria above
- If your contract ends and is renewed before 27 September 2020, the JobKeeper payment will only be available for the fortnights where the employment relationship exists until 27 September.
If your contract is not renewed, you will no longer be eligible.
- You can only claim the JobKeeper payment from one employer by completing the nomination notice
- You should contact all of your employers and tell them which employer you want to receive the JobKeeper payment from
- You must tell your employer that you agree to be nominated as an eligible employee
- Complete the JobKeeper Employee Nomination Notice and give this to your employer by the end of April 2020
- If you are a long-term casual and you have other permanent employment, you MUST choose your permanent employer – you cannot be nominated by your casual employer
HOW THE PAYMENT IS MADE
The JobKeeper payment is paid to your employer. You will continue to receive your pay from your employer in the usual cycle and the ATO will reimburse your employer after they have paid you.
If you’re an eligible employee and your employer is claiming the JobKeeper payment, you will receive a minimum of $1,500 per fortnight before tax. Your employer is not required to pay super on this amount.
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Normally earning less than $1,500 per fortnight |
Normally earning more than $1,500 per fortnight |
If you are stood down or have reduced hours |
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Your employer must pay you at least $1,500 per fortnight before tax. It’s likely your employer will continue paying you your ordinary income amount and provide a ‘top-up’ so you receive at least $1,500 per fortnight before tax. |
You may continue to receive your regular income according to your workplace arrangements. The JobKeeper payment will assist your employer by subsidising part of your income. They are not required to pass this on to you as an additional payment on top of your regular income. |
If you normally earn more than $1,500 per fortnight but are stood down or working reduced hours so that your income is nil or less than $1,500 per fortnight, then your employer must pay you at least $1,500 per fortnight before tax. |
The JobKeeper payment is treated as income for the purposes of social security payments and is taxable income – this will be assessed in your tax return.
In these challenging times, it is important that you seek advice if needed and should you have queries about the new tax measures and how they impact you, we can be reached here.
