Original JobKeeper FAQs

This page was last updated on 22 October 2020.

For an explanation about how JobKeeper works, please see here.

For ATO details about JobKeeper, please see here.

The Australian Government has also provided their own list of JobKeeper FAQs here.

What about JobKeeper 2.0?

Please see here.

How is JobKeeper Paid?

If you’re enrolled for JobKeeper, the ATO will pay your business monthly in arrears after you have completed step 3 each month.

If you have employees, you still need to pay them according to their normal pay cycle (ensuring that you pay them a minimum of $1,500* per fortnight (before tax) by the relevant payment date), this is called satisfying the wage condition. Then after each month the ATO will reimburse your business for each eligible employee that was paid the minimum $1,500 per fortnight (before tax).

*Note that during JobKeeper 2.0 the minimum payment is NOT $1,500. Please see here to work out which minimum payment amount applies.

See further below for “How do I process JobKeeper through payroll?”

How do I work out if my business is eligible to apply for the original version of JobKeeper?

Most businesses will need to show a 30% reduction of income (or 15% for charitable entities). This can be calculated by comparing either a month or a quarter with the same month or quarter last year. This is called the Basic Test. Examples below

GST turnover for June 2020 compared with GST turnover for June 2019
GST turnover for July 2020 compared with GST turnover for July 2019
- (and so on until the month of September 2020)
GST turnover for July – September 2020 quarter compared with GST turnover for July – September 2019 quarter

Further details about eligibility, and a list of ineligible businesses can be found here.

This spreadsheet can also be used to test for a 30% decrease in turnover.

What if I cannot satisfy the Basic Test as above?

The ATO has created a few Alternative Tests for businesses that are unable to satisfy the basic tests listed above.

The above spreadsheet includes one of the alternative tests called the Significant Increase in Turnover Test.

*These tests are for the original version of JobKeeper only.

How do I apply for Jobkeeper?

You can apply for JobKeeper either through

MyGov
ATO Business Portal

Please see instructions here to access MyGov and the ATO Business Portal.

Please note that the application process has multiple steps. You might need to complete all three steps depending when you are applying for JobKeeper. To be safe, go back to the JobKeeper enrollment section after you’ve completed step 1 and check if you’re able to complete the other steps.

Step 1 – Enroll your business

Step 2 – Identify potential employees and/or Eligible Business Participant

Step 3 – (monthly declaration) explained further below

See also Step-By-Step Guides as a preview of the application process.

When can I apply for JobKeeper?

Applications opened on the 20th April 2020 and have been extended until the 31st May 2020. This was to receive JobKeeper payments for the months of April and May.

After 31st May 2020

If you become eligible for JobKeeper in subsequent months, you will need to apply for JobKeeper before the end of that month. For example, if your turnover decrease by 30% in June, you’ll need to apply for JobKeeper before the end of June.

If you have employees, you also need to satisfy the wage condition. Satisfying the wage condition means that you’ve already paid each eligible employee a minimum of $1,500 (before tax) by the relevant fortnight dates here.*

For example, you might enroll for JobKeeper just before the end of June, and then start topping up your employees’ pays to the minimum $1,500 (before tax) in the next payrun in July. Therefore, you can only start receiving reimbursements for your employees’ JobKeeper payments from the month of July and not June. On the other hand, if your employees’ June wages are already above the $1,500 (before tax) minimum per fortnight, then you can claim JobKeeper reimbursements starting from the month of June.

*Recent Update: If you have newly eligible employees because they commenced employment between 01 March 2020 and 01 July 2020, then the due date for their payments has been extended to 31 August 2020, rather than the relevant fortnight dates listed above. This only applies to new employees. Existing employees who were already employed at 01 March 2020 must still be paid by the relevant fortnight dates.

What if I was eligible for JobKeeper but I missed the deadline?

You’ll need to call the ATO on 13 28 66 to see if you can backdate your JobKeeper claim.

Are there on-going reporting obligations after I’ve applied for JobKeeper?

Yes, there is monthly reporting known as “Step 3” or “Declare”.

Step 3 should be completed within 14 days of the end of each month otherwise your JobKeeper payments may be delayed.

In step 3, you will need to report your turnover at the end of each month and your projected turnover for the next month.

Note that when you are reporting your turnover you should NOT include JobKeeper payments received, Cash Flow Boost payments, or COVID19 grants as part of your turnover. Generally your turnover would only include sales. A full list of excluded income can be found here.

If you have employees, you also need to report your employees’ continued eligibility and that you’ve satisfied the wage condition (you actually paid them $1,500 (or the JobKeeper 2.0 rate) per fortnight (before tax) by the relevant fortnight dates).

If you have opted in to the STP payroll system, and you are regularly filing each payrun to the ATO, then your employees’ details should pre-fill in step 3.

Step 3 will also ask which fortnights each person is eligible for JobKeeper. For example, a person eligible for the entire month of June would select “FN 5 & 6”. The list of fortnight dates can be found here.

*Please note that it is the payment date of the wages that determines which fortnight they fall into, rather than the last day of the pay cycle*

Note that if you did not pay an employee a minimum of $1,500 (or the JobKeeper 2.0 rate) (before tax) by the relevant fortnight date, then they will not be eligible for JobKeeper for that particular fortnight (JobKeeper is a reimbursement system, so you cannot be reimbursed if you did not actually pay them). For example, if you enroll for JobKeeper in the middle of June and need to top-up their next pay to meet the minimum, then you might only claim FN 6 (depending on payment dates). However, if their normal pays are already above the minimum, then you could claim JobKeeper for both fortnights as you would have already paid the minimum.

What if I’ve made a mistake with JobKeeper?

You’ll need to contact the ATO on 13 28 66 as JobKeeper errors cannot be fixed online.

Does my business lose it’s eligibility if it’s income increases later?

Not in this original version of JobKeeper. You only need to satisfy the eligibility test once. You will still need to report your monthly income, but this will not affect your eligibility.

*Note that in JobKeeper 2.0 commencing on 28th September 2020, your income WILL affect your eligibility for JobKeeper 2.0.

Can I choose which employees I offer JobKeeper to?

No. The ATO has confirmed their “One In – All In” position on this. If you enroll in the JobKeeper program, then you must offer JobKeeper payments to all eligible employees by way of the JobKeeper Employee Nomination Notice.

Which employees are eligible for JobKeeper?

Initial eligibility:

At 01 March 2020 or 01 July 2020 they were

Aged 18 years or older
Were a full-time, part-time, or a long term (12 months) casual employee of the business
Were an Australian resident, or were a tax resident of Australia and held a subclass 444 visa

For employees that were 16 or 17 years old, they must also be

Financially independent
Not a full-time student

Ongoing eligibility:

If the employee passed the initial eligibility, then they will be eligible for JobKeeper during fortnights where they met the following eligibility criteria

They did not receive parental leave
They did not receive dad & partner pay
They did not receive certain workers compensation payments

Please see further details here.

Can a business receive both JobKeeper and Supporting Apprentices & Trainees payments for the same employee?

No. Further information about apprentices and JobKeeper can be found here.

Can someone receive the JobSeeker and JobKeeper payments at the same time?

Technically yes, but you would need to report your JobKeeper income to Centrelink and it would make you ineligible for JobSeeker.

*Note that during JobKeeper 2.0, you might still be eligible for JobSeeker because the JobKeeper payments will be reduced.

Can an employee receive JobKeeper payments from multiple employers?

No, an employee can only receive JobKeeper payments from one employer. Likewise, they cannot receive JobKeeper through their own business as well as an employer.

Also note that where an employee has full-time (FT) or part-time (PT) employment as well as casual employment or their own business entity, the FT or PT employment takes precedence and the employee will not be eligible for JobKeeper through their casual employment or through their business entity.

Can I ask my employees to work extra hours to “earn” their JobKeeper payment?

No. If your employees do not normally work enough hours to earn $1,500 per fortnight (before tax), you CANNOT ask them to work extra hours solely for the purpose of earning their JobKeeper payments.

Please see FairWork details here.

Do I have to pay $1,500 (before tax) to employees who would not normally receive that much per fortnight?

*This same principle applies to the JobKeeper 2.0 payment rates.

Yes, you will need to top-up employees’ wages so that they receive $1,500 (before tax) per fortnight if they are part of the JobKeper program. See examples here. Please note that most software providers have created a “JobKeeper Top-Up” pay item which should be used for the top-up amount to bring their pay up to $1,500 (before tax) per fortnight.

Failure to pay employees, or deliberate misuse of the JobKeeper payments, may result in penalties up to $126,000 and/or imprisonment.

How do I process JobKeeper through payroll?

You might require a combination of some/all of the following

Ordinary Wages – If employees are still performing their duties, they should be paid for those hours as per usual.

JobKeeper Top Up – If the employees ordinary wages are less than the minimum $1,500 (or other rate for JobKeeper 2.0) per fortnight (before tax), you will need to add and extra pay item on their payslip called JobKeeper Top Up. This should be set up in your payroll system as an allowance subject to PAYGW, but subject to super is optional.

Stand Down Hours – If employees have been stood down (either partially or completely), they are still entitled to accrue leave as per usual. You will need to add an extra line on their payslip called Stand Down Hours. This should be set up in your payroll system as an ordinary wage that accrues leave. When you process their payroll you will need to enter the hours that they normally would have worked with $0 payment rate.

Please see FairWork details about standing down employees here.

Should I withhold PAYGW from the $1,500 I pay to my employees?

Yes, the $1,500 per fortnight is before tax.

How does JobKeeper work for owners of a company or trust?

If the directors/beneficiaries are processing their wages through the business, then they will be eligible to receive JobKeeper just like any other employee might be.

If the directors/beneficiaries do not receive wages from the business, then the business can receive JobKeeper payments in respect of ONE director/beneficiary as an “Eligible Business Participant” (EBP) as well as JobKeeper payments for each eligible employee. However, if the EBP has full-time or part-time work elsewhere, then that FT or PT employment takes precedence and they cannot be an EBP for their own business.

Note that where a business is receiving JobKeeper payments in regards to a director/beneficiary as an EBP, the JobKeeper payments for the EBP do not need to be paid out to a specific director/beneficiary as there may be multiple directors/beneficiaries who are not employees. Instead, the JobKeeper payments in respect of the EBP can be kept within the business to fund the continued running of the business.

Further details here

Are sole traders eligible for JobKeeper?

Yes, sole traders may also receive JobKeeper as an “Eligible Business Participant” (EBP) if their income has reduced by 30%. However, if they have full-time or part-time work elsewhere, then that employment takes precedence and they cannot receive JobKeeper for themselves through their own business. However, they may still apply for JobKeeper for any eligible employees that they may have.

Further information for sole traders can be found here

How does JobKeeper work for partnerships?

Partnerships can apply for JobKeeper in respect of ONE partner as the “Eligible Business Participant” (EBP). However, if the EBP has full-time or part-time work elsewhere, then that FT or PT employment takes precedence and they cannot be an EBP for the partnership. Partnerships may also apply for JobKeeper for any eligible employees.

Note that when a partnership receives JobKeeper payments in respect of an EBP, those JobKeeper payments for the EBP do not need to be paid out to a specific partner. Instead it can be kept within the partnership to fund the continued running of the business.

Further details here