What does the JobKeeper payment mean for your business?

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The JobKeeper payment was announced by the Australian government to assist employers and employees during the strain of business shutdowns and job losses. Eligible employers will be entitled to a subsidy of $1,500 per fortnight for employees from 30 March 2020 for a maximum period of 6 months.

Employers cannot keep the payment but are required to pass those payments directly onto eligible employees as wages or as a subsidy to their regular wage.

Who is eligible? Employers and their employees, also includeing sole-traders.

For employees to be eligible they must fit the following criteria:

  • Are currently employed (including those stood down or re-hired)
  • Were employed at 1 March 2020
  • Are full-time, part-time, or long-term casuals (a long-term casual is a casual employed on a regular basis for longer than 12 months as at 1 March 2020)
  • Are at least 16 years old.
  • Are an Australian Citizen, the holder of a permanent visa, a non-protected special category visa holder who has been residing continually in Australia.

How does it work?

Eligible employers will receive a fortnightly payment of $1500 to pay each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by the employers. Every eligible employee must receive at least $1500 per fortnight before tax. 

The Fair Work Act has recently been amended to assist in the management of the JobKeeper scheme.  Under the new laws an employer can give “Jobkeeper enabling directions” such as :

  • Stand down an employee without pay (completely or partially) for any period they cannot be usefully employed.
  • Change employment arrangements such as:
    • What they do
    • Where they work, and
    • When they work

There are however, very specific tests and rules to make these directions.

For more information and to find out if you qualify, contact ProcessWorx directly on (08) 9316 9896 or enquiries@processworx.com.au

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