COVID-19 JobKeeper Impact on Super, Tax and Workplace Law

The implementation of the JobKeeper Payment Scheme has provided  Australian Small and Medium Businesses the much-needed support to survive the COVID-19 crisis. However, it is important for businesses to understand what impact these payments have on income tax, GST and Superannuation.

What is the tax and super treatment of the JobKeeper payment?

PAYG

The Payment is subject to PAYG Withholding.

Superannuation Contribution Guarantee

Where an employee is paid $1,500 or more per fortnight, the employer’s superannuation obligations, don’t change.

Where an employee is receiving a ‘top-up’ payment on their salary to reach the minimum of $1,500 per fortnight, it is up to the employer’s discretion to pay superannuation on the top-up payment subsidised by the Australian Government.

GST

The JobKeeper Payment is not subject to GST.

Income Tax

The JobKeeper Payment is Income Tax assessable.

What is the impact of the JobKeeper payment on Workplace entitlements and obligations?
Employers are required to comply with all their obligations as per the Fair Work Act. The JobKeeper payment does not remove any workplace protection for employees.

Disclaimer

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.