JobKeeper Payment of Federal Government coronavirus economic stimulus stage 3

On 8^th April 2020, the Australian Government’s JobKeeper Payment passed parliament with an estimated $130 billion to be paid to hundreds of thousands of business to subsidise wages of about 6 million employees.

The JobKeeper Payment

The JobKeeper Payment is a temporary scheme open to businesses that have been impacted by Coronavirus and have seen significant reductions of between 30% – 50% in annual turnover. The government will provide $1,500 per fortnight per eligible employee for up to 6 months.

The package aims to support employers to maintain connection to their employees while the business is experiencing a downturn so when the crisis is over, businesses can reactivate their operations again quickly. This initiative gave businesses the financial ability to keep employees on payroll and quickly reactivate operations once the economy began to recover. Importantly, the JobKeeper stimulus was also extended to self-employed individuals.

The Jobkeeper Payment will also be available to self-employed.

Method and Eligibility to apply

Employers (including non-for-profits) will be eligible for the subsidy if:

Their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30% relative to a comparable period a year ago (of at least a month)

Their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50% relative to a comparable period a year ago (of at least a month)

Charities that have lost 15 per cent of their turnover in the same period.

Celf-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30 per cent decline in turnover relative to a comparable prior period (of at least a month).

How to Apply for the JobKeeper Payment

Businesses need to apply to the ATO to participate in the scheme and provide supporting information demonstrating a downturn in their business. They also need to report the number of eligible employees employed by the business on a monthly basis

The ATO encourages employers looking to take advantage of the JobKeeper payment to register for updates at www.ato.gov.au/JobKeeper and the ATO will contact those registered as soon as more information is available.

For more information from the Government please click here.

Who is an eligible employee

Employees on the books on 1 March 2020 and continues to be engaged by the business. Includes full-time, part-time, long-term casuals (been with the business on a regular basis for at least 12 months as at 1 March 2020) and stood down employees.

An employee must be an Australian citizen, the holder of a Permanent Visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.

The JobKeeper stimulus package was more than just financial support—it helped businesses maintain the vital employer-employee connection during a crisis. Instead of laying off workers, businesses could keep teams together, ensuring they were ready to bounce back once conditions improved.

How can we help?

Navigating the rules of the JobKeeper Payment wasn’t always simple. Many businesses turned to advisors and accountants for support with:

• Confirming eligibility.
• Managing applications with the ATO.
• Reviewing payroll and employee records.
• Planning for cash flow alongside other coronavirus stimulus measures.

Professional guidance ensured businesses maximised their entitlements while staying compliant.

We are here to help, please feel free to give us a call 02 9415 1511 or email re*******@***************om.au, and we can discuss in further detail.

The JobKeeper Payment was one of the most significant government interventions in Australia’s history, helping millions of workers and businesses survive the COVID-19 crisis. While temporary, it highlighted the importance of government support in times of economic uncertainty.