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JobKeeper Payment Eligibility

JOBKEEPER PAYMENT ELIGIBILITY

The JobKeeper Payment legislation was passed last week, however rather than the flood of information and guidance we were all hoping for, the details are still only coming at a frustrating trickle. 

Below is some of the most recent information available on eligibility requirements for the JobKeeper Payment.

Eligible Employers

The basic criteria for employers to be eligible for the JobKeeper payment are for all of the following to apply:

  • On 1 March 2020, you carried on a business in Australia.
  • You employed at least one eligible employee on 1 March 2020.
  • Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
  • Your business has faced a 30% fall in turnover (for a business with an aggregated turnover of $1 billion or less).

 

Turnover Tests

To work out your fall in turnover, you can compare either:

  • GST turnover for March 2020 with GST turnover for March 2019
  • projected GST turnover for April 2020 with GST turnover for April 2019
  • projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.


How you choose to project your fall in turnover is not dependent on whether you report a quarterly or monthly BAS, though you can do that if it is easier. 

If you work out that you qualify for the JobKeeper payments for the first fortnight because your turnover has declined by the relevant amount, you remain eligible and do not need to keep testing turnover in following months. However, you will have ongoing monthly reporting requirements.

The Commissioner of Taxation also has the discretion to set out alternative tests that can establish your eligibility when turnover periods are not appropriately comparable (for example, if your business has been in operation less than a year). 


Eligible Employees

Your employee is eligible under the JobKeeper Payment scheme if they:

  • are employed by you (including those stood down or re-hired)
  • were either a
    • permanent full-time or part-time employee at 1 March 2020
    • long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020 and not a permanent employee of any other employer
  • were at least 16 years of age on 1 March 2020
  • were an Australian resident as at 1 March 2020 within the meaning of the Social Security Act 1991, which requires that they reside in Australia, and are one of an Australian citizen, the holder of a permanent visa, or a Protected Special Category Visa Holder. More information about these requirements can be found from the Services Australia website under residence descriptions. Your employee can also be an Australian tax resident who is a Special Category (Subclass 444) Visa Holder. Employees who are not permanent residents of Australia must notify you of their visa status to allow you to determine if they are eligible.
  • were not in receipt of any of these payments during the JobKeeper fortnight
    • government parental leave or Dad and partner pay
    • a payment in accordance with Australian worker compensation law for an individual's total incapacity for work
  • agree to be nominated by you (see Nominating employees).


You cannot claim for any employees who:

  • were first employed by you after 1 March 2020, or
  • left your employment before 1 March 2020, or
  • have been, or have agreed to be, nominated by another employer.


Casual employees are not eligible unless they were employed by you on a regular and systematic basis for at least 12 months as at 1 March 2020.

If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they must choose the permanent employer and cannot nominate you. They cannot receive the JobKeeper payment from more than one employer.