Posted April 15, 2020
The JobKeeper Payment has been one of the most seriously discussed pieces of legislation released in the history of Australian Government. For many salon owners who have been forced to shut down their salons or drastically reduce their operating hours and stand down staff, this appears to be one of the few ways for them to stay in business and to look after their teams. But there are lots of in’s and out’s in this piece of legislation – so be prepared to get into the detail and find out exactly what this means for your salon.
The below points are a top-line review that applies to MOST salon owners. For more information or specific points, please refer to this complete set of very detailed FAQ’s, please check out this document from treasury.gov.au
For advice specific to YOUR business and given with the salon owners best interests at heart, HABA Members can speak to our team of legal experts by calling our advice line on (02) 9221 9911 and pressing option 2.
The JobKeeper Payment is a payment made to eligible businesses affected by the Coronavirus to support them in retaining employees. Eligible businesses that elect to participate will receive a payment of $1,500 per fortnight per eligible employee to support the people they employed as at 1 March 2020 who are retained in employment. The first payments by the ATO will be received by employers in the first week of May.
Employers (including not-for-profits) will be eligible for the subsidy if:
- their business has a turnover of less than $1 billion (and if part of a group for income tax purposes, the group has a combined turnover of less than $1 billion) and estimates their turnover has fallen or will likely fall by 30% or more;
- OR their business has a turnover of $1 billion or more (or if part of a group for income tax purposes, the group has a combined turnover of $1 billion or more) and estimate their turnover has fallen or will likely fall by 50% or more;
- OR their business is not subject to the Major Bank Levy.
Eligible employers need to determine if they want to participate in this program by applying to participate in it. More details will be provided about how to do that, but for now, register here.
You can apply for the payment if you reasonably expect that your turnover will fall by 30% or more (or 50% or more for businesses with a turnover of $1 billion or more), relative to your turnover in a corresponding period a year earlier. The ATO will provide guidance about the self-assessment of actual and anticipated falls in turnover.
If your business remains open and your employees are continuing work, your payments and obligations to eligible employees will not change. Your business, if eligible, will receive a $1,500 per fortnight subsidy to support their continued employment. However, if any eligible employee currently earns less than $1,500 before tax per fortnight, you will need to pay them $1,500 per fortnight before tax to receive the JobKeeper payment.
You will only be able to claim the JobKeeper payment for eligible employees that were in your employment on 1 March 2020 and continue to be employed while you are claiming the JobKeeper payment. An eligible employee is an employee who:
- is currently employed by the eligible employer (including those stood down or re-hired);
- is a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;
- was aged 16 years or older at 1 March 2020;
- was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
- was a resident for Australian tax purposes on 1 March 2020; and
- is not in receipt of a JobKeeper Payment from another employer
If the eligible employee is paid more than $1,500 a fortnight before tax, the employer will only be reimbursed $1,500 per fortnight.
If an employee for whom you are receiving the JobKeeper Payment resigns, you must notify the ATO. You may need to refund some money to the ATO
You can claim JobKeeper for employees that were stood down after 1 March 2020. To be eligible in relation to these employees, you will need to pay them a minimum of $1,500 per fortnight (before tax) for the payment periods of the JobKeeper Scheme.
The points above cover some of the most common questions that we are hearing from our HABA members, but they are by no means exhaustive as this is a very complex issue. The only way to truly know about what your obligations are is to get advice tailored to YOUR BUSINESS and your particular situation. HABA Members can speak to our team of legal experts by calling our advice line on (02) 9221 9911 and pressing option 2.
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