Job Keeper Payments - Wage Subsidies for Employers/Sole Traders

Tuesday, 31 March 2020   

Job Keeper Payments - Wage Subsidies for Employers/Sole Traders

Under the JobKeeper Payment, businesses significantly impacted by the Coronavirus outbreak will be able to access a subsidy from the Government to continue paying their employees. This assistance will help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income – even if their hours have been cut. The JobKeeper Payment is a temporary scheme open to businesses impacted by the Coronavirus. The JobKeeper Payment will also be available to the self-employed.

The Government will provide $1,500 per fortnight per employee for up to 6 months. The JobKeeper Payment will support employers to maintain their connection to their employees. These connections will enable business to reactivate their operations quickly – without having to rehire staff – when the crisis is over.

Is your Business Eligible ?

Employers (including non-for-profits) will be eligible for the subsidy if: •

  • their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or •
  • their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and the business is not subject to the Major Bank Levy.
  • Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees employed by the business on a monthly basis. Eligible employers will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer – including full-time, part-time, long-term casuals and stood down employees. Casual employees eligible for the JobKeeper Payment are those employees who have been with their employer on a regular basis for at least the previous 12 months as at 1 March 2020

If you are a Sole Trader (No Employees)

Businesses without employees, such as the self-employed, can register their interest in applying for JobKeeper Payment via The Australian Taxation Office (ATO) from 30 March 2020. Businesses without employees will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent business activity. People who are self-employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account.

 Steps to take Now

1. Register: The first step is to Register your Interest

2. Employee Information: You will need to provide on your Employees from 1 March 2020. The ATO will have most of this onfile from Single Touch Payroll.

3. Employee Payments: Employees will receive $1500 per fortnight subject to PAYG Withholding. In your Payroll Processing software - a new payroll item "Job Keeper" will need to be added.

4. Employee Notification: You will need to notify Employees that they have been included in the program.

5. Provide Information to ATO: Participating businesses will need to report through the STP each payroll run.


 For more detailed information and examples see the Employer Fact Sheet  or  All Businesses /Sole Traders need t0 Register your interest here