Finance

JobKeeper payment and extension explained

This information has been provided by the Australian Taxation Office and is current as of 28 December 2020

How JobKeeper works

The JobKeeper Payment supports businesses affected by coronavirus. It is a wage subsidy, which means it is paid to your employer to help cover the cost of wages they have already paid to some employees.

You do not claim the JobKeeper Payment. If your employer is eligible, they can choose to apply.

JobKeeper extension

The JobKeeper Payment has been extended, and from 28 September 2020 some changes apply. You don’t need to contact the ATO. Your employer will tell you if they are eligible.

Talk to your employer

The JobKeeper Payment is paid to some employers that have been impacted by coronavirus, for wages they have paid to some employees. It is not paid to employees.

If you want to know if your employer is participating in the JobKeeper scheme, you need to ask your employer. Only your employer can give you this information.

If your employer is already in JobKeeper and participating in the extension, you do not need to do anything. Your employer will let us know – you don’t need to contact the ATO.

Complete a nomination form

Your employer may ask you to fill in an employee nomination form. They need you to complete a nomination form so that they can claim JobKeeper for wages they have paid to you.

It is not compulsory to nominate your employer for JobKeeper. If you don’t nominate them they can’t receive the JobKeeper payment for you.

If you have more than one job, you can only nominate one employer. If one of your jobs is a casual job, you can only nominate your permanent employer and not your casual employer.

However, you can still continue to work for employers who won’t be claiming JobKeeper Payment for you. For example, you may have been stood down (but are still employed) by your nominated employer and be receiving JobKeeper payments from them, and also have a job with another employer.

The employer that you give your nomination form to will tell us if they are claiming for you. You don’t need to contact the ATO.

That is all you need to do. Everything else is managed by your employer.

JobKeeper rates

Before 28 September 2020, the amount of JobKeeper Payment your employer can receive for wages they have paid to you is $1,500 per fortnight.

From 28 September 2020, the amount of JobKeeper Payment your employer can receive for wages they have paid to you is generally based on how many hours you worked (including paid leave or paid public holidays) in either of the following periods:

the 4 weeks (28 days) of pay periods before 1 March 2020, or

the 4 weeks (28 days) of pay periods before 1 July 2020.

If you worked 80 hours or more in the relevant period your employer will receive the higher tier 1 rate. If you worked fewer than 80 hours they will receive a lower tier 2 rate.

JobKeeper explained Credit: Australian Tax Office

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