Late on Wednesday night, Parliament passed the $130b JobKeeper wage subsidy package unamended from the original announcement made by the Prime Minister Scott Morrison on 30 March 2020. Passed in one day, this is the single largest economic rescue package in Australia’s history.

More than 760,000 businesses had registered with the ATO for the JobKeeper scheme as of yesterday morning. Speaking to the media after the legislation passed, Treasurer Josh Frydenberg said that some 6 million workers, including full-time, part-time, casuals working with the same employer for 12 months or more, and self employed individuals are anticipated to benefit from the scheme.

The Opposition called for amendments to widen the net of eligible employees to include casuals that had been with their employers for less than 12 months as well as individuals on working visas, representing approximately 1 million people. This was not included in the final legislation, however we can expect further calls to broaden the legislation to include this section of the workforce.

The payments will be made monthly in arrears from 1 May 2020 to cover fortnightly periods commencing 30 March 2020 and ending on 27 September 2020. The Australian Banking Association has indicated that their member banks will provide assistance to bridge any payment gap for businesses struggling to pay their employees until the first JobKeeper instalment next month.

When pressed about whether this program could or would be extended beyond 27 September 2020, the Treasurer said that none of the measures are set and forget.

It should be noted that while the JobKeeper package provides significant relief in its own right, it will also be linked to other support measures, such as the Commercial Tenancy Code which outlines eligibility for rent relief with criteria similar to those in the JobKeeper scheme.

Critical elements of the package contained in the Treasurer’s rules accompanying the legislation were released in Exposure Draft form yesterday and provide a good starting base for assessment. We are still waiting for these to be released in final form.

Your business will be eligible to access JobKeeper if you are one of the following: Businesses (including not-for-profits) with aggregated (ie including global associates and affiliates) annual turnover of up to $1b who estimate their Australian GST turnover has fallen or will likely fall by 30% or more (compared to the prior year’s period) for a month or quarter within the 30 March to 27 September 2020 period. For businesses (including not-for-profits) with aggregated annual turnover exceeding $1b, the relevant turnover decline threshold is 50%. For Charities registered with the Australian Charities and Not-for-profits Commission (ACNC), the relevant turnover decline threshold is 15%. Non-government schools and higher education institutions do not qualify for the 15% threshold. Government entities and entities subject to the Major Bank Levy will not be eligible for the package. Which employees are eligible? Employees must have been in your employment on 1 March 2020, and must continue to be employed while you are claiming the JobKeeper payment. This extends to employees who have been stood down or re-hired. Other eligibility criteria include: Full-time or part-time employees, or casuals employed on a regular and systematic basis for longer than 12 months as at 1 March 2020. They must be aged 16 years or older at 1 March 2020. They are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020. They are a resident for Australian tax purposes on 1 March 2020. Not in receipt of a JobKeeper Payment from another employer. Self-employed individuals operating through partnerships, trusts or companies may also be eligible to receive JobKeeper payments. Salaries and wages should continue to be made using your payroll system and reported to the ATO via Single Touch Payroll. This will support the online claim process when it is available. If you do not report through Single Touch Payroll, you can still claim the JobKeeper payment through a manual claim process.

Since the Prime Minister first announced the JobKeeper package, there have been a number of questions around definitions for turnover and employment types. While the government has sought to address these questions on the Treasury website, we recognise there is still some ambiguity around eligibility. As access to the JobKeeper package includes an element of self-assessment, and gives both the Treasurer and the ATO wide flexibility in administering the package, we are on hand to discuss your particular circumstances and assist you with your application if required.

Read more about the JobKeeper payment here.