Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (Cth)
Under the JobKeeper Payment, businesses impacted by the coronavirus will be provided with a fortnightly payment of $1,500 per eligible employee until 27th September 2020.
Eligible Employers
An employer is eligible if, at the time of applying:
- Their business has a turnover of less than $1 billion and they estimate their turnover has fallen by more than 30 per cent or more; or
- Their business has an annual turnover of $1 billion or more and they estimate their turnover has fallen or will likely fall by more than 50 per cent; and
- The business is not subject to the Major Bank Levy.
Self-employed individuals and not-for-profit organisations are included under eligible employers, however businesses in liquidation are not.
Establishing Your Fall in Turnover
The business must establish that their turnover in the relevant month or quarter has fallen, or will likely fall, relative to the turnover in the corresponding period in the previous year.
The Tax Commissioner has the discretion to consider additional information where:
- The business was not in operation a year earlier, or
- Their turnover a year earlier was not representative of their usual average turnover (for example, because there was an interim acquisition, they were newly established or scaling up, or their turnover is typically highly variable)
Turnover is calculated as it is for GST purposes, and is reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies. Registered charities may also include donations received or likely to be received.
Corporate Groups
The turnover test applies to each business connected with or affiliated with the business.
Therefore, individual businesses within a corporate group may be eligible while other businesses in the group may not be.
Charities
A lower turnover decline test of 15 per cent or more applies to charities registered with the Australian Charities and Not-for-profits Commission (ACNC).
However the standard turnover decline tests apply to universities and non-government schools that are also registered charities.
Sole Traders
Sole traders will be eligible if they:
- Have an aggregated turnover of less than $1 billion and estimate their turnover has fallen or will fall by 30 per cent or more.
- Had an ABN on or before 12 March 2020, and
- Either had an amount included in their assessable income for the 2018-19 year and it was included in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by the Tax Commissioner), or
- made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to the Tax Commissioner on or before 12 March 2020 (or such later time as allowed by the Tax Commissioner)
- Were actively engaged in the business
- Are not a permanent employee or any other employer
- Are not entitled to another JobKeeper Payment
- Are aged at least 16 years of age
- Are a resident for Australian tax purposes
- Are an Australian citizen, holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder
Self-employed Individuals
Self-employed individuals will be eligible if they meet the standard turnover test for businesses outlined above, and are not a permanent employee of another employer.
Self-employed individuals without employees will be eligible to receive one JobKeeper payment, and those with employees can receive one payment in addition to the payments for their eligible employees.
Where the business:
- Operates through a partnership, one partner can be nominated to receive the payment.
- Operates through a company, one director can be nominated to receive the payment.
- Has shareholders who provide labour to the company and receive dividends in lieu of wages, one shareholder can be nominated to receive the payment.
- Operates through a trust, one individual beneficiary (not a corporate beneficiary) can be nominated to receive the payment.
Eligible Employees
The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and the employee must be currently employed. Employees that were stood down after 1 March 2020 and subsequently re-engaged will still be eligible.
To be eligible, the employee must be:
- Full-time, part-time or a long-term casual (employed on a regular and systemic basis for longer than 12 months)
- A permanent employee, or if a long-term casual, not a permanent employee of any other employer
- At least 16 years of age
- An Australian citizen, holder of a permanent visa or a Special Category (Subclass 444) Visa Holder
- A resident for Australian tax purposes
- Not in receipt of a JobKeeper Payment from another employer
Employees Receiving Parental Leave Pay
Employees receiving Parental Leave Pay from their employer are eligible, however employees receiving Parental Leave Pay from Services Australia are not eligible.
Employees Receiving Workers Compensation
Employees receiving workers compensation will only be eligible if they are working, for example on reduced hours.