We Simplified the Job Seeker and Job Keeper Payments for You

Check which payment scheme apply to you

 

The Australian government is concerned about the well-being of employees and employers amid the ongoing coronavirus crisis. It is the reason why ScoMo has announced an AUD 130 billion support package that will help employees and employers via job seeker and job keeper payments. Here’s a breakdown on who can benefit from it and how.

 

Understanding Job Seeker Payments

In simple words, if you are seeking a job, you are a job seeker. This payment is available to every employee who had a job but lost it due to coronavirus crisis. It is also available to sole traders, casual workers, contract workers and self-employed people who meet the income test due to the economic downturn that began due to COVID-19. The government has waived the asset test and the waiting period of one week.

As per this scheme, a job seeker can get AUD 565.70 to AUD 790.10 per fortnight depending on their income. The less a job seeker earns, the more he/she gets and vice versa. If someone has a partner, their income will affect the amount a person is eligible for.

 

What About the Employer?

The employers who had to close their doors due to coronavirus are also eligible for payments above. They have cash boots for employers.  

What’s Cash Boost for Employers?

Employers will get a payment that will be equal to the PAYG tax withheld on wages. This amount will have a maximum limit of AUD 10k for each financial year.

 

Understanding Job Keeper Payment

Now that you have some idea of job seeker payments, it’s time to understand job keeper payments. This initiative by the Australian government is for employers who want to retain their employees or want to stay connected with employees even after the business is closed.

A job keeper will only get this benefit if their business turnover has reduced or will reduce by 30 per cent relative to a comparable period a year back. Businesses with over AUD 1 billion in revenue won’t be eligible for the job keeper payments.

 

The amount of job keeper payment would get from the government is a maximum of AUD 1,500 per eligible employee and fortnight. You must know that these payments need to be reported as income so they might affect payments that are being received by businesses from Services Australia.

The good news for sole traders is that they can also apply for job keeper payments.

 

Accessing Job Keeper Payments

• You need to register your intent to apply with the ATO. They will provide you with updates and tell you when you can apply. Applications are not being accepted yet.
•  Make sure that you have a record of revenue for 2018-19 income year and 2019-2020 year till now.
• Compare revenue for March 2019 with March 2020 (or any other month if this is not possible) and ensure that you meet the 30 per cent decline criteria.
• The next step is to identify employees who are eligible for job keeper payments and share that with the ATO each month.
•  Notify the employees that they will get the payments soon. Most likely, the ATO will make use of Single Touch Payroll in most cases to prepopulate the information.
• Employees can be registered with one employer only.

 

Exceptions to the Rule

• Every job seeker who receives financial assistance will not get the AUD 550 job seeker payment.
• People who get disability or age payments will get the existing payment and two AUD 750 cash payments, but you will not get the fortnightly payments of AUD 550.
• Any New Zealander who reached Australia after February 26, 2001, won’t be eligible for the payment. People living on temporary visas are also not eligible.
• People whose partners are earning over AUD 79,762 a year won’t get either job seeker or job keeper payments.

 

The Benefits are Good Enough

This announcement brings relief for people who are tired of ScoMo announcing new restrictions every few days. Sharing the details, the Australian Prime Minister said: “We are committing $130b over the next six months to support the jobs and livelihoods of what we anticipate of being almost 6 million Australians who will need that lifeline in the months ahead.”

It is being estimated that half of the workforce (total is 13 million) of the country will benefit from these job seeker and job keeper benefits.