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The Government's $130 billion JobKeeper package — the largest financial lifeline package in Australia's history — has just been passed with the support of both sides of Parliament.
It's expected to be accessed by around six million workers.
Before we get to some lingering questions about how the scheme is going to work, here's a quick recap of what it's offering:
- Businesses affected by COVID-19 can receive $1,500 per employee per fortnight
- The businesses must pass the payment on to their staff
- The wage subsidy package is budgeted for six months
- As of Wednesday morning, 750,000 businesses had signed up and that number is growing
Am I eligible for JobKeeper?
There are a few specific criteria you need to meet, including that you're currently employed or were employed by your work at March 1, 2020. This includes anyone that has been stood down or re-hired since then.
You also need to be either a full-time or part-time employee or a casual worker who has been employed regularly with the same employer for more than a year.
And finally, you need to be either an Australian citizen, someone with a permanent visa, a Protected Special Category Visa holder, a non-protected Special Category Visa holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa holder.
It's also worth remembering you can only get the JobKeeper Payment from one employer.
Is the JobKeeper payment taxed?
Yes it is.
The Government says the payment is essentially the same as any other kind of income you'd normally pay tax on.
It'll be paid to you by your employer not the Government, and so the same tax rules apply.
Another thing to note is that you won't be paid superannuation for the payment.
But you will be paid superannuation for any other income from your employer that might be supplemented by JobKeeper.
On the other hand, if you are receiving the JobSeeker payment (previously known as Newstart) directly from the Government, you won't be taxed.
When will the payments start?
That depends on who you're working for.
The Government is urging all businesses who've signed up for the JobKeeper Payment to pay their staff the $1,500 a fortnight now, and claim the money back from the Australian Tax Office in May.
But if your employer isn't in a financial position to do that at the moment you might have to wait until the beginning of May when the payments start flowing to businesses.
Do I have to work to get the JobKeeper payment?
Not if there's no work for you to do.
For some businesses, the restrictions introduced by the Federal Government mean they either can't offer the goods or services they usually would, or only in a limited way, like cafes doing takeaway services.
In these cases, employees may not have to work at all or may work reduced or modified hours, but will still receive the JobKeeper Payment.
Some businesses are also thinking outside the box when it comes to what they can get their employees to do while their usual job is on hold.
What if I'm already getting government benefits?
If you're receiving the JobSeeker payment you can't also receive JobKeeper.
But the Government is encouraging people not to withdraw any applications for JobSeeker if you've already put yours in.
Given you have to report your income for the JobSeeker payment anyway, it says the Tax Office will work out which one you should receive.
If you're getting a different kind of Government benefit like the student-only Youth Allowance and have also been stood down from your job, you should be able to receive JobKeeper.
But if the $1,500 is more than you'd usually earn in a fortnight, it might impact how much you get from your other allowance.
What you need to know about coronavirus:
Topics: government-and-politics, business-economics-and-finance, money-and-monetary-policy, infectious-diseases-other, federal-government, health, respiratory-diseases, covid-19, community-and-society, australia