What is the JobKeeper payment and how does my business qualify?
- with a turnover of:
- less than $1 billion who estimate their turnover has or will fall by 30% or more (for at least a month);
- $1 billion or more whose turnover has or will fall by more than 50% (for at least a month); or
- are not for profit organisations who estimate their turnover has or will fall by 15% or more (for at least a month); and
- are not subject to the Major Bank Levy, a company in liquidation or a bankrupt sole trader.
- with a turnover of:
- A decline in turnover will be worked out (at your discretion) by comparing the relevant month or quarter to the turnover in the corresponding month or quarter in the 2019 calendar year. E.g. comparing the June 2020 quarter to the June 2019 quarter. Once the test is satisfied for a period, you do not need to re-test eligibility.
- Payment must be made to employees who:
- are currently employed (including those stood down or re-hired); and
- were employed at 1 March 2020; and
- are at least 16 years of age; and
- are Australian Citizens, holders of permanent visas, holders protected special category visa holder (for 10 years) or holder of Special Category Subclass 444 Visa (New Zealanders); and
- are not receiving the JobSeeker payment (previously called Newstart); and
- are not receiving paid parental leave, paid dad and partner pay, or any amount pursuant to Australian workers’ compensation law in respect of total incapacity for work.
- Business operators who operate as sole traders, trusts, companies and partnerships are also eligible for this measure (see below).
- From 20 April: enrol for JobKeeper payment. https://www.ato.gov.au/general/JobKeeper-payment/
- By 30 April, pay your employees to claim JobKeeper payments for April.
- 4 May onwards: identify your employees.
- If you need more time, you have until the end of May to enrol and identify your employees.
- If you don’t qualify in April or anticipate qualifying for the period April to June 2020, please be aware that you can continue to test each subsequent month up until September*.
What do I need to do now?
Go to https://www.ato.gov.au/general/JobKeeper-payment/. You will need to click on the appropriate link if you are an Employer or a Sole Trader (or other entity such as an individual operating their business through a company or trust that is not an employee)
- Check if you are an eligible employer https://www.ato.gov.au/general/jobkeeper-payment/employers/eligible-employers/
- Check if you have eligible employees https://www.ato.gov.au/general/jobkeeper-payment/employers/your-eligible-employees/
- Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or have nominated through another business.
- Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file and provide a copy to us as your agents.
- Then enrol and apply for the JobKeeper payment https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/
What does enrolment and application entail?
- From 20 April 2020, you can enrol with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.
- In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.
- Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April).
The process is as follows:
- Step 1 – Apply to claim the JobKeeper payment by logging in to the ATO Business PortalExternal Link
- Step 2 – Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.
- Step 3 – Identify your eligible employees in the application form by
- selecting employee details that are prefilled from your STP pay reports if you report payroll information through an STP enabled payroll solution, or
- manually entering employee details in ATO online services or the Business Portal if you do not use an STP enabled payroll solution, or
- if you need assistance, using us as your registered tax agents who will submit a report on your behalf through Online services for agents.
- Step 4 – Submit the confirmation of your eligible employees online and wait for the confirmation screen.
- Step 5 – Notify your eligible employees you have nominated them.
- Step 6 – The ATO will pay you the JobKeeper payment for all eligible employees after receiving your application.
- Step 7 – Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via your registered tax agent. This will ensure you will continue to receive the JobKeeper payments from the ATO. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.
- Step 8 – If your eligible employees change or leave your employment, you will need to notify the ATO through your monthly JobKeeper Declaration report.
If you use the ATO Business Portal, you will need a myGovID linked to your ABN in relationship
Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid
What do you need to do for your employees?
- You need to identify which employees you intend to claim the JobKeeper payment for and tell them you intend to claim the JobKeeper payment for them.
- You need to provide these employees with the JobKeeper employee nomination notice and ask them to return it to you by the end of April if you want to claim JobKeeper payment for April. https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
- If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they cannot nominate you. They cannot receive the JobKeeper payment from more than one employer.
- If an employee is currently receiving an income support payment, they must notify Services Australia (formerly Centrelink) of their new income to avoid incurring a debt that they will have to repay.
How much is the JobKeeper Payment?
- As an employer, you will receive a payment from the ATO of $1,500 per employee per fortnight as long as you and your employees meet the eligibility criteria.
- Note, if you are already paying $1,500 or more to your employee for fortnight, this is a subsidy from the Government.
- The ATO will pay you for each eligible employee monthly in arrears beginning in May 2020. Payments will be made from the first week of May.
- An employer will usually get $3,000 a month per eligible employee for the two fortnightly periods in that month.
- This payment is available for continuing to employ and pay staff as well staff you intend to stand down or have previously stood down (as long as the staff eligibility criteria are met per above).
How do I access the business portal?
- To access the Business Portal and apply yourself, you need to set up your myGovID and link it to your business in Relationship Authorisation Manager (RAM).
- myGovID is an app you download to your smart device to prove who you are online. It’s like the 100 point ID check, but on your smart device. It’s different to a myGov account.
- RAM is an authorisation service that allows you to act on behalf of an entity with participating government online services.
- Download the myGovID app to your smart device and set it up using your identity documents. Anyone who accesses our online services on behalf of your entity will need their own myGovID.
- Log in to RAM (access RAM by visiting https://info.authorisationmanager.gov.au) using your myGovID and link your entity’s ABN. The way you link depends on whether you’re an eligible individual associate or a primary person.
- Once your ABN is linked, you can start setting up and managing authorisations. When you authorise someone they’ll receive an authorisation request via email to act on behalf of your entity online.
Find out more about what you need to do at www.ato.gov.au/mygovid
Can RVN help my business with the application and enrolment?
We are here to help if you need us, and can apply and enrol on your behalf should you need. Please don’t hesitate to contact our office if you need assistance or if your circumstances change.
*based on information available as at 21 April 2020