What is the difference between JobSeeker and JobKeeper payments? There are plenty Government announcements and measures to help the country cope with the coronavirus (Covid-19) pandemic, and it is completely understandable that this is all confusing for many workers and employers. Below we outline some of the key points for JobSeeker and JobKeeper payments to help you understand what you’re eligible for.
What is the JobSeeker Payment?
Lets put it simply, if you are seeking a job, you are a JobSeeker. JobSeeker payment is a financial help if you’re between 22 and 'Age Pension' age and looking for work.
The JobSeeker payment is a payment available to employees stood down or let go, sole traders, self-employed, casual workers and contract workers who meet the income test as a result of the economic downturn due to the Coronavirus. It’s also for when you’re sick or injured and can’t do your usual work or study for a short period of time.
With this scheme, JobSeeker can get anything from $565.70 to $790.10 a fortnight depending on their income. The rule is the more you earn the less you get. To find out what are the steps to claim JobSeeker Payment CLICK HERE >
What is the JobKeeper Payment?
The JobKeeper Payment helps employers significantly impacted by the Coronavirus cover the costs of their employees’ wages, so more Australians can retain their jobs and continue to earn an income. This is an initiative to assist employers retain employees if still operating or to stay connected to employees if their business has closed. The payment ensures eligible employers remain connected to their workforce and will help businesses restart quickly when the crisis is over.
An employer will be eligible if their business turnover has been reduced, or will be reduced, by more than 30% (if annual turnover is less than $1b) or 50% (if annual turnover $1b or more) relative to a comparable period a year ago (of at least one month). To receive the JobKeeper Payment, employers must Register an intention to apply on the ATO website.
Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. This payment will subsidise the normal wages paid by the employer. However, if the employee earns less than $1,500 per fortnight the employer must pay the employee the full $1,500 per fortnight.
Eligible employees are employees who are:
- currently employed by the eligible employer (including those stood down or re-hired);
- were employed by the employer at 1 March 2020;
- are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020).
To qualify, employees must also be an Australian citizens – or hold a permanent visa, a protected special category visa or a non-protected special category visa and have been living in Australia continually for a decade or more. New Zealand citizens on a special category visa will also be eligible.
If you're an employee, your employer will need to claim the fortnightly payment of $1,500 on your behalf.
How do you access the JobKeeper subsidy if you are an Employer?
To be able to access the JobKeeper subsidy, you will need to:1. Register your interest with the ATO
Applications are not yet open. However, you should register your intent to apply for the JobKeeper subsidy with the ATO. CLICK HERE TO REGISTER >2. Assess your turnover
- Ensure you have an accurate record of your revenue for the 2018-19 income year and for the 2019-20 year up to date.
- Ensure you keep an accurate record of revenue from March 2020 on-wards.
- Compare your revenue for the whole of March 2019 with the whole of March 2020.
- Measure the decline in your revenue and keep records. To be eligible, the decline need to be more than 30%.
- Keep measuring. If you are not eligible in March, you may become eligible in April, May or later.
3. Identify eligible employees
Nominate the employees eligible for the JobKeeper payments – you will need to provide this information to the ATO and keep that information up to date each month. Employees can only be registered with one employer.
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Have you noticed our #FridayExpertTips... here's one that relates to #COVID-19: StimulusPackage
"Anyone impacted by CoVID-19: ATO Relief is NOT AVAILABLE AUTOMATICALLY. You will need to apply for relief. Contact ATO Emergency Support Infoline 1800 806 218 or get in touch with us."
This information is accurate on the day it’s published and is subject to change as the situation around Coronavirus (COVID-19) evolves. Our conclusions may not be valid if there is any change in those facts, circumstances and assumptions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused.