JobKeeper Payment In Australia During Coronavirus Pandemic
Employees who lost their jobs because of the coronavirus crisis will be able to continue to be paid the JobKeeper payment from the Australian government through their employers. Each eligible employee will receive $1,500 for a maximum of 6 months.
Many employers are struggling to retain their employees because of the coronavirus outbreak. The JobKeeper payment will enable employers to keep their employees on a payroll. Many employers are struggling to retain their employees because of the coronavirus outbreak. The JobKeeper payment will enable employers to keep their employees on a payroll.
What is JobKeeper Payment?
Employers in Australia will receive a sum of money from the Government to continue paying their employees. This assistance will help employers to keep people in their jobs and re-start when the corona pandemic is over. Employees can keep their job and get paid their salary – even if their work place is closed. The JobKeeper Payment will also be available to the self-employed business owners.
How much will the employees receive?
The Government will provide $1,500 per fortnight per employee for up to 6 months. This payment will enable employers to maintain their connection to their employees and keep them until the coronavirus crisis is over.
Am I eligible for the JobKeeper payment?
In order to receive the JobKeeper payment, both the employer and employee must meet eligibility criteria.
Eligible employees are employees who:
- Are currently employed by the eligible employer (including those stood down or re-hired);
- Were already employed by the employer by 1 March 2020
- Are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020)
- Are at least 16 years of age
- Are 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
- Are not in receipt of a JobKeeper Payment from another employer.
The government estimates that six million workers will receive this payment. Gig economy workers will be covered, as they are sole traders.
What if I am on a temporary visa?
The Australian Prime Minister explained that New Zealanders on 444 visas will get the payment because they are part of an ongoing economy in Australia. Eligibility may be expanded to other visa holders such as Pacific workers on temporary visas.
Can I apply for Jobseeker payment if I have savings?
Yes. You can apply for jobseeker payment even if you have savings. The government has also waved the additional waiting period which was known as the Liquid Assets Waiting Period for Jobseeker payment applicants who have savings.
Will I receive $1,500 even if I ordinarily earn less?
If an employee usually receives less than $1,500 in income per fortnight before tax, their employer must pay them, at a minimum, $1,500 per fortnight, before tax. It is therefore possible for a long-term casual or part-time worker to receive more than their ordinary pay.
What if I was stood down or sacked?
If an employee was stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
Employees of work places that shut down due to various restrictions – such as cafes, restaurants, theatres, casino workers etc. – will continue to be paid even if they are not working.
Can I get the JobKeeper and other payments?
A person receiving the JobKeeper payment cannot also receive the JobSeeker payment (formerly Newstart). People who have already applied for JobSeeker can withdraw and shift to job keeper payments if they are re-engaged by their employer.
A person cannot be in receipt of JobKeeper payments from two or more employers.
What is the payment process for the JobKeeper payment?
Eligible employees will receive, at a minimum, $1,500 per fortnight before tax, and employers are able to top-up the payment.
For the employers participate in the scheme, their employees will receive this payment as follows.
- If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. The JobKeeper Payment will assist their employer to continue operating by subsidising all or part of the income of their employee(s).
- If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
- If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
- If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.
It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.
Payments will be made to the employer monthly in arrears by the ATO.
How can I apply for the JobKeeper payment?
Eligible employers will need to identify eligible employees for JobKeeper payments.
Employers can register and apply for the JobKeeper payment for their employees via The Australian Taxation Office (ATO) by means of an online application. The first payment will be received by employers from the ATO. Employees who wish to apply for the JobKeeper payment should contact their employer to find out if their employer is eligible to pay them the JobKeeper payment.
Employers will be required to ensure eligible employees will receive, at a minimum, $1,500 per fortnight, before tax.
What are the employees’ Obligations?
After the employees receive a notification from their employer that they are receiving the JobKeeper payment, employees in the following circumstances will have additional obligations.
- Employees that have multiple employers must notify the employer who is their primary employer.
- Employees that are not Australian citizens must notify their employer of their visa status, to allow their employer to determine if they are an eligible employee.
- Employees that are currently in receipt of an income support payment must notify Services Australia of their new income.
If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.
Coronavirus lockdown has caused hundreds of thousands of Australian to become jobless. Hundreds of thousands of people have lost their jobs in Australia due to a downturn in consumer spending following the lockdown caused by Coronavirus pandemic.
The impact is immense and job losses are widespread across Australia.
Australia is experiencing widespread ongoing transmission of respiratory illness caused by the novel (new) coronavirus (COVID-19).
To find out more about the status of COVID-19 in Australia and how to protect yourself contact the Australian Government Department of Health