The ATO has announced JobKeeper payments to eligible employers will commence in the first week of May 2020.
Applications for the JobKeeper scheme officially opened this week, with employers expected to pass on the $1500 fortnightly supplement to 6.7 million Australian workers.
On April 9, the Australian Government passed into law the JobKeeper Payment, a $130 billon wage subsidy program to support eligible employees and businesses.
The scheme supports businesses significantly affected by the coronavirus to help keep more Australians in jobs.
If businesses are impacted by the coronavirus outbreak, they may be eligible to access the JobKeeper wage subsidy to continue paying their employees.
The ATO is ready to support eligible businesses to access this measure now that the legislation has been enacted by government.
It will be using existing systems and processes to deliver the wage subsidy to employers, and to ensure that it is administered in accordance with the intent of the new law.
Employers do not need to call the ATO to access the JobKeeper wage subsidy for employees – they can determine eligibility and find out more information at www.ato.gov.au/JobKeeper.
The JobKeeper payment is open to eligible employers, sole traders and other entities to enable them to pay their eligible employee’s salary or wages of at least $1500 (before tax) per fortnight.
You can enrol for the payment through the ATO’s Business Portal, in ATO online services using myGov if you are a sole trader, or through a registered tax or BAS agent.
Eligible employers will be reimbursed a fixed amount of $1500 per fortnight for each eligible employee.
Employers need to pay all eligible employees a minimum of $1500 (before tax) per fortnight to claim the payment. This will be paid to the employer in arrears each month. Payments can be made for the period beginning March 30, 2020.
The ATO is also supporting a number of other relief measures to help the economy withstand and recover from the economic impact of COVID-19. For information about other support and assistance available go to www.ato.gov.au/coronavirus.
The changes to the Fair Work Act under JobKeeper are temporary and due to end on September 28, meaning workers’ hours and pay should revert to normal after that date.