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Jobkeeper – all you need to know

Wednesday, April 15, 2020

 Jobkeeper Legislation


 On 7 April, 2020 Federal Parliament passed the following bills to give effect to the Jobkeeper Payment wage subsidy –

  • Coronavirus Economic Response Package (Payments and Benefits) Bill 2020
  • Coronavirus Economic Response Package Omnibus (Measures No 2) Bill 2020
  • Appropriation Bill (No 5) 2019-2020
  • Appropriation Bill (No 6) 2019-2020
  • The Exposure Draft – explaining how the Coronavirus Economic Response Package (Payment and Benefits) Bill 2020 will operate – has yet to be issued.




  •  $1500 per eligible employee per fortnight
  • Paid to an eligible business
  • Determined by a relevant percentage decrease in turnover
  • Certain wage criteria must be met
  • Elected to participate in the scheme and provide relevant information to the ATO




 To include

  • Individuals employed as at 1 March, 2020
  • An employee who was 16 years old or more on 1 March, 2020
  • An employee or long term casual (12 months or more) as at 1 March, 2020
  • Australian resident or Subclass 444 Visa holder on 1 March
  • Individual must notify the employer if they meet the necessary conditions


To exclude

  • Employee cannot notify more than one employer
  • Employee cannot be on parental leave
  • Employee cannot be on Workcover or be totally incapacitated





  • Companies, Partnerships, Trusts, Sole Traders
  • Carried on business in Australia on 1 March,, 2020
  • Satisfies decline in Turnover Test



  • Australian Government Agencies (or wholly owned entity)
  • Local Council Government (or wholly owned entity)
  • A sovereign entity
  • A business subject to the Major Bank Levy
  • A business in liquidation




 The $1 billion Threshold Test

  • Calculations based on an entity’s aggregated turnover
    • For the current fiscal year (estimated); or
    • The previous fiscal year
  • Aggregated turnover includes the turnover of connected entities and affiliates

Reduction in Turnover Test

  • Based upon projected GST turnover
  • Excludes the following supplies –
    • Input taxed supplies
    • Supplies which are not for consideration (and are not taxable supplies under Section 72.5)
    • Supplies not made in connection with your enterprise
    • Supplies with entities in GST group not disregarded
    • Government Grants and Appropriations

For businesses with a turnover of less than $1 billion and which are not charities –

Projected GST Turnover decline of at least 30%

For businesses with a turnover of more than $1 billion and which are not charities –

Projected GST Turnover decline of more than 50%

For all charities and not-for-profits registered with the ACNC – a projected GST Turnover decline of 15%.   Such turnover must include cash donations and market value of property donations.




  1. Determine usual BAS reporting period post 30 March, 2020 (eg quarterly) – so the test period is 1 April to 30 June 2020.
  2. Compute the projected GST turnover for the test period (1 April to 30 June 2020).
  3. Calculate the GST turnover (based upon projected GST turnover definition) for corresponding period last year (1 April to 30 June 2019).
  4. Assess if turnover has reduced by more than the required percentage (15%/30%/50%)

The same calculation method will be required for the quarter ending 30 September 2020.

If the decline accords with the relevant threshold the test is satisfied in relation to the Jobkeeper fortnightly payments covered by the BAS period and the following wage conditions will apply.




Employee gross wage per fortnight       


Below $1500  – Eligibility

Employer pays the difference so that employee will  receive a total of $1500 per fortnight.  Employees on unpaid leave  will be paid $1500 per fortnight.  Superannuation is not mandatory   on top up component of any payment.

 $1500 plus   – Eligibility

Employer continues to pay normal salary –  Jobkeeper payment subsidises Employer wage bill.

Same applies to employees on paid leave and / or employees on reduced hours.




  • ATO must be notified in approved form to register
  • Employer must apply at the end of the second fortnight (26 April) for the first two Fortnight Periods commencing 1 April
  • Employer must apply at the end of each fortnight for subsequent Fortnight Periods
  • Employer must provide details of the relevant individuals to the ATO to confirm eligibility
  • Employer must notify individual in writing within 7 days of applying for Jobkeeper payment of its intention to nominate that individual
  • Individual must first notify Employer to include him/her as eligible employee




 The Jobkeeper rules also apply to a ‘business participant’ who includes –

  • Individual not employed by the entity during fortnight
  • Individual actively engaged in the business and
    • Is a sole trader
    • Is a partner in a partnership
    • An adult beneficiary or director of a company
  • 1 March 2020 employee requirements must be met
  • Individual agrees to be eligible business participant
  • Only 1 business participant per entity
  • No other entity is entitled to the same individual
  • Entity must have had an ABN on 21 March 2020
  • Entity must have had assessable income from carrying on a business in FY19



March 1 Employee eligibility test
March 30 Fortnight 1 start
April 26 Employee compliance notification
April 26 Employer must have applied for first 2 payments
May (end of 1st week) First 2 payments should be received
May 10

& every fortnight thereafter

Employer must have applied for Fortnightly Payment
September 27 Jobkeeper subsidy ends





  • Record keeping requirements
  • Penalties/imprisonment for fraud/misleading information
  • Turnover testing
  • Employee eligibility
  • Top up payments for certain employees


For further information please refer to the Australian Government Fact Sheet – Jobkeeper Payment – Frequently Asked Questions –


Please contact our office for more information

+ 61 3 9823 3366



Roseby Rosner & Young is a Certified
Practicing Account

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