Posted April 20, 2020 13:38:30

Photo: More than 850,000 businesses have expressed interest in supporting employees with JobKeeper. (ABC News: Nick Haggarty)

Applications for the Government's JobKeeper scheme have opened and 6.7 million Australians are expected to benefit.

The $130 billion program is the largest single piece of government spending in Australian history and was designed to support businesses and workers significantly affected by the coronavirus crisis.

Under it, the Government will subsidise eligible employees' salary or wages, so they earn at least $1,500 per fortnight, before tax — every cent has to go to workers.

More than 850,000 businesses are keen to enrol in the scheme and Prime Minister Scott Morrison has warned that any that do not pass on the full $1,500 to employees could expect to feel the full weight of the law and be cut off from further payments.

Any company that applies for benefits for its employees has to tell them it intends to claim JobKeeper for them and anyone with several jobs can choose which one will nominate them, as claims cannot be made through more than one employer.

Payments will begin in the first week of May, and to be eligible, employers and workers must satisfy several criteria.

So what do you need to do to access payments?

Firstly, those wanting to access the help on offer will need to ensure they qualify.

If you have been stood down since March 1, you are eligible for the JobKeeper payments.

Your company or its registered tax or Business Activity Statement agents will need to sign up for the wage subsidy scheme in order for you to receive them.

But there are conditions.

Employers can register if their business has an annual turnover of less than $1 billion and has experienced a 30 per cent fall in revenue since March 1.

Companies with an annual turnover of more than $1 billion will have to have a 50 per cent fall in revenue to be eligible for the scheme.

If the company has closed down and you're made redundant or fired, you'll instead have to apply for JobSeeker (here's a step-by-step guide on how to apply for JobSeeker)

To be eligible for the JobKeeper payment, you need to ensure:

• You are currently employed (including those stood down or re-hired) by an eligible employer;
• You were employed by the employer at March 1, 2020;
• You are either full-time, part-time, or a long-term casual (a casual employed on a regular basis for longer than 12 months as at March 1, 2020);
• You are at least 16 years of age;
• You are an Australian citizen, the holder of 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;
• You are not in receipt of a JobKeeper payment from another employer.

To see more specific details, check out the Government's official advice.

What do I need to do if I have previously submitted an Expression of Interest?

Applications have opened so it's time to enrol and the Governments suggests doing this by April 30.

From May 4, businesses need to identify employees they will support with the $1,500 fortnightly payments and they have until the end of May to do so.

Each month eligibility needs to be reconfirmed to make sure the money keeps coming and as JobKeeper will run for six months under current laws, this will need to be done several times.

While the payments won't hit your bank account for another few weeks, they can be backdated to March 30.

It is important to remember payments made under the scheme are counted as income, so keep that in mind when calculating any other payments you might be receiving.

"If you are receiving income support, you will need to report the income you receive through the JobKeeper payment," the ATO says.

The ATO has also warned that anyone caught double-dipping with JobKeeper and JobSeeker could find themselves in trouble and may be left with a debt.

What about businesses that try to scam the system?

There are concerns about fraud or businesses trying to pocket some of the money that has been provided and Prime Minister Scott Morrison has described reports of employers trying to skim the payment as "appalling".

"That sort of behaviour where it occurs by employers is disgraceful and it's illegal," he said.

"They should be reported to the police and the Australian Tax Office, to make sure that can be followed up — it's not on."

Potential penalties for those caught playing fast and loose with the scheme are outlined in the table below.

Photo: The Government has outlined the penalties for employers or employees if they break the law. (Supplied: Treasury Department)

Employment Minister Michaelia Cash said the penalty for businesses who tried to rort the system would be at the discretion of the ATO Commissioner, but the Tax Office would be conducting audits of businesses that had signed up.

The Treasury Department made it clear there would be zero tolerance for those who did the wrong thing.

"An entity that does not comply with its obligations in relation to the JobKeeper payment is also potentially liable for a wider range of significant administrative and criminal sanctions under the tax law and general criminal law," the fact sheet says.

"These penalties will not affect entities that act honestly and with reasonable care."

Topics: covid-19, diseases-and-disorders, health, government-and-politics, australia