Updated July 22, 2020
Under the JobKeeper Payment, co-operatives and mutuals impacted by COVID-19 will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a period of 6 months.
On 21 July the Government announced a six month extension to JobKeeper. To access this extension from 28 September, businesses will need to reassess their eligibility to access JobKeeper based on actual GST turnover declines (more information below). Payments during the extension period will be reduced as follows:
- 28 September 2020 – 3 January 2021: $1200, or $650 for employees on average working less than 20 hours a week.
- 4 January 2021 – 28 March 2021: $1000, or $500 for employees on average working less than 20 hours a week.
Eligibility for JobKeeper depends on whether your co-operative or mutual is an eligible employer and whether your employees are eligible employees.
Eligible employers are those co-ops and mutuals:
- with an annual turnover of less than $1 billion and whose turnover has fallen by 30%, or
- with an annual turnover of more than $1 billion, and whose turnover has fallen by 50%, or
- that are a registered charity (except universities and non-government schools), and whose turnover has fallen by 15%.
Establishing the drop or likely drop in turnover for a period will require a comparison of turnover, as calculated for GST purposes and reported on Business Activity Statements, for the same reporting month or quarter in the previous financial year. If there are reasons why the year-on-year comparison doesn’t demonstrate the impact on your co-op or mutual, the Tax Commissioner has discretion to consider additional information (e.g. if your business was affected by drought the previous year, and a comparison to two years ago is more appropriate).
Eligible employees are employees currently employed by the eligible employer and were employed on 1 March 2020. The employee may be full-time, part-time or long-term casual, must be over 16 years of age and be either an Australian citizen, permanent resident or a 444 visa. Long-term casual means that the employee was employed regularly and systematically for at least the past 12 months as at 1 March 2020. Each eligible employee can only receive JobKeeper payments from one employer; employees with a casual position and permanent poition with two employers must receive the payment via their permanent position.
Eligibility after 28 September 2020
To continue accessing JobKeeper from 28 September, co-operatives and mutuals will need to demonstrate an ongoing significant decline in turnover using actual GST turnover from the June and September quarters. The same process will apply again on 4 January 2021, but including the December quarter. The turnover decline amounts required have not been changed. Further information
How to apply
- Check whether your organisation is or is likely to experience the requisite downturn in turnover in your BAS reporting and whether you have eligible employees.
- Continue paying eligible employees at least $1500 per fortnight (from 30 March).
- Notify employees you are intending to apply and check they aren’t claiming with another employer.
- Send employees the nomination notice to complete and return.
- Provide this information to your tax or BAS agent if you have one.
- You or your agent can apply using the Business Portal. You should apply be the end of April to ensure you receive payments as soon as possible.
- You can keep employee details up to date on the Business Portal
- You need to make a monthly declaration confirming your employees and current and projected GST turnover.
Go to the ATO website for detailed guides on applying, including for single touch payroll and non single touch payroll employers.
JobKeeper is separate to the Cash Boost measure, read the Cash Boost information to understand eligibility and application requirements for that measure for your co-op.
The JobKeeper payment subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May.
How can BCCM help?
- Supply chain and business continuity issues – email firstname.lastname@example.org Attn: Anthony Taylor
- Government assistance for coronavirus impacted businesses – email email@example.com Attn: Anthony Taylor
- Free coronavirus updates and information. Sign up to our eNews – email firstname.lastname@example.org Attn: Steph Newman
- Follow us on LinkedIn, Twitter, Facebook
- Go to our COVID-19 page
- Join the coronavirus member group – email email@example.com Attn: Steph Newman
Information about becoming a member:
- Email firstname.lastname@example.org
This information was prepared by the BCCM. It does not constitute legal or other professional advice and should not be relied on as such. You should obtain legal or other professional advice in relation to any particular matters or concerns that you have. The BCCM does not make any claim or representation or give any warranty in relation to the document, and is not responsible for the accuracy, currency or suitability of the information in the document.