COVID-19 JobKeeper Eligibility for Employers and Employees
By Paolo Coniglio, 20.04.2020
The JobKeeper Payment is a scheme designed to support businesses significantly affected by COVID-19, to help keep more Australians in jobs. The JobKeeper Payment is administered by the Australian Taxation Office (ATO)
JobKeeper Eligibility – Employers
What type of employers are eligible?
The JobKeeper payment is available for Companies, Not for Profit (including charities) and Individual Self Employed (Sole Traders) with no employees. Employers are eligible for the subsidy if their business has suffered a:
- 15% fall in turnover (for ACNC – Registered charities – other than Schools and Universities);
- 30% fall in turnover (for an aggregated annual turnover of $1 Billion or less);
- 50% fall in turnover (for an aggregated annual turnover of more than $1 Billion).
What type of employers are not eligible?
The following entities are not eligible:
- Australian Government and its agencies;
- State and Territories Government and their agencies;
- Foreign Governments and their agencies;
- Businesses subject to the Major Bank Levy;
- Businesses in liquidation, or a partnership or sole trader in bankruptcy.
Note: Partnerships: the JobKeeper payment is available to only one partner.
Companies with multiple (Non Working) Directors: the JobKeeper payment is available to only one director.
JobKeeper Eligibility – Employees
Employees are responsible to determine whether they are eligible to receive the JobKeeper Payment or not.
Employees working in multiple jobs, must select their Primary Employer to receive the JobKeeper Payments.
What type of employees are eligible?
Eligible employees are employees who:
- are currently employed by the eligible employer
(including employee who are currently on paid or unpaid leave);
- were employed by such employer on 1 March 2020;
- are employed as Full-Time or Part-Time Employees
(including employees on fixed term contracts);
- are employed as Casual Employees for over 12 months;
- have been stood down due to Government mandate;
- are at least 16 years of age;
- are an Australian Citizen, Permanent Resident or New Zealander on a Subclass 444 Visa;
- are not receiving the JobKeeper payment from another employer.
What type of employees are not eligible?
The following employees are not eligible:
- Casual employees employed for less than 12 months;
- Employees employed after the 1 March 2020;
- Employees on temporary visas (i.e. Working Holidays, Skilled, Student);
- Employees receiving the JobKeeper payment from another employer;
- Employees who are currently off work paid on Workers Compensation;
- Labour Hired Employees
(their direct employer must be eligible and apply for the JobKeeper payment);
- Employees on Government Paid Parental Leave;
- Terminated employees, due to the COVID-19, however not re-instated
(these employees can apply to the JobSeeker payment via Centrelink);
- Trusts’ beneficiaries.
How can employees nominate their employer for the JobKeeper Payment?
Employees must complete the following steps:
- Check they meet the eligibility criteria;
- Choose which employer they wish to elect as their Primary Employer if they hold multiple jobs;
- Notify their employer they want them to claim the JobKeeper Payment for them by completing a JobKeeper Employee Nomination Notice form and return it to the employer as soon as possible;
- Notify Services Australia (Centrelink) if they are currently receiving the JobSeeker (NewStarter) Allowance and let them know their employer has applied for the JobKeeper Payment Scheme.
This blog and attached resources are of general nature designed for informational and educational purposes only. They should not be construed as professional financial advice for your individual business. Should you need such advice, consult a licensed financial or tax advisor.