JobKeeper: Am I eligible? Everything you need to know about the wage subsidy

Everything you need to know about the JobKeeper wage subsidy: who can claim, how to apply and how payments will be administered.

Businesses with a turnover of less than $1 billion and that have suffered a 30 per cent hit to that turnover are eligible for JobKeeper payments. Owner/Barber Jairo Amici pictured in Gosford. Picture: AAP

Over 838,000 Australians have registered their interest in the JobKeeper wage subsidy. Here are some frequently asked questions to help you understand the package, and how you can get more information.

Am I eligible for JobKeeper?

A business is eligible for JobKeeper if its turnover is under $1 billion and it has suffered a 30 per cent reduction in turnover due to the coronavirus pandemic. If your revenue is over $1 billion, you must provide evidence that your business will experience a 50 per cent reduction in revenue.

The Australian Taxation Office will have “flexibility and discretion” to allow some other businesses that don’t meet the turnover threshold to apply.

Not-for-profit entities (including charities) and self-employed individuals that meet the turnover tests for businesses can also apply.

It’s important to also note that your business is eligible if you reasonably expect it will suffer a 30 per cent reduction in revenue.

Employees who can be covered by the scheme are:

• Currently employed by the eligible employer, even if they were stood down or re-hired
• full-time or part-time employees
• a casual employed regularly for longer than 12 months from March 1
• are a permanent employee of the employer
• not a permanent employee of any other employer
• aged 16 years or older at 1 March 2020
• an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder
• a resident for Australian tax purposes on 1 March 2020; and
• not in receipt of a JobKeeper Payment from another employer.

AC Fit Outs in Upper Coomera has been given a four-month break from paying rent by its landlord. This means the business, combined with the JobKeeper subsidy, will be able to keep operating. Picture: Jerad Williams

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How do I apply for the JobKeeper payment?

From April 20 eligible businesses will be able to enrol for the JobKeeper payment online via the Business Portal on the ATO website.

In the online form, you will need to provide your bank details and indicate if you are claiming the JobKeeper payment based on business participation, for example if you are a sole trader.

Until then, eligible businesses can register their interest for the program at the Australian Taxation Office website.

You will be prompted to fill out a six question form and asked to include details like your business name, Australian Business Number and contact details.

For more information, go here. 

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How do I claim the JobKeeper payment as a sole trader?

Sole traders (including those who are self-employed or have employees) will be eligible for JobKeeper under the same earnings reductions as other eligible businesses.

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What is GST turnover?

A business’ turnover is calculated to assess whether a business must register for GST.

If a business’ income exceeds $75,000 a business must register for GST – a 10 per cent tax added to all goods and services in Australia.

Not for profit businesses income must exceed $150,000 to register for GST.

The ATO says GST turnover equals total business income (not your profit), minus any:

• GST included in sales to your customers
• sales that aren't for payment and aren't taxable
• sales not connected with an enterprise you run
• input-taxed sales you make
• sales not connected with Australia.