JobKeeper Payment Package for Doctors | employers & self-employed must act now

— 10 min read

Doctor employer or self-employed
Information updated 20/04/2020

The JobKeeper Payment Package

The announcement of the JobKeeper Payment Package by the Federal Government last night [30 March 2020] will go down as the biggest, most generous financial package ever offered in Australian history.

As the Coronavirus (COVID-19) pandemic throws all of us into a spiral of unprecedented measures and unknown consequences, it really means that we are all learning and adapting as we go. The Morrison Government’s response to Coronavirus’ economic impacts, providing $130 billion in aid to Australian businesses, is nothing short of extraordinary.

In summary, the JobKeeper Payment Package has been designed to act as safety net and bring relief to eligible Australian businesses, to keep them afloat should this crisis lasts. Most importantly, the package will aim at sheltering employees of those businesses from losing all economic power during this period of business hibernation or even worse, losing their jobs altogether.

What does it mean for DPM clients and Australian doctors in general?

JobKeeper payments

Announced 30 March 2020. This measure is yet to be formally legislated and more details regarding the application and payment process may become available in due course.

The JobKeeper payment is a subsidy from the Government to continue paying employees and the self-employed. This assistance is to help businesses keep employees ready to re-start when the crisis is over. This temporary scheme is open to businesses impacted by COVID-19 and is also available to the self-employed.

The Government will provide $1,500 per fortnight per eligible employee or self-employed person for up to 6 months.

You must act now and Register

You will need to register your interest in receiving this payment following the instructions from the ATO below. If you have multiple entities you will need to register each entity separately (e.g. your service trust and you personally if self-employed).

  • You or your registered tax or BAS agent can enrol for the JobKeeper payment.
  • Log in to the Business Portal using myGovID.
  • Select ‘Manage employees’ then the link for the JobKeeper payment.
  • Fill in the JobKeeper enrolment form and provide your:
    – eligibility information
    – expected number of eligible employees
    – contact and bank details.
  • Notify all your eligible employees you have nominated them.

To ensure you receive your JobKeeper payments as early possible, you should enrol by the end of April. However, enrolments are open until the end of May if you need more time.

For more information, read JobKeeper Payment – Treasury Fact Sheet

Employers Eligibility

  • Business has a turnover of less than $1 billion and the turnover will be reduced by more than 30% relative to a comparable period a year ago;
  • Employers must elect to participate in the scheme via an application to the ATO and provide supporting documentation demonstrating a downturn in their business;
  • Employers report the number of eligible employees employed on a monthly basis;
  • Eligible employers will receive a payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer including full-time, part-time, long-term casuals (employed for more than 12 months) and stood down employees.

For more information, read Treasury Fact Sheet for Employers

Self-Employed Eligibility

  • If they have suffered or expect to suffer a 30% decline in turnover relative to a comparable period (of at least a month) .
  • Other details on self-employed eligibility are currently minimal in regards to multiple income streams, turnover, residency and comparable periods
  • Registering your interest will allow you to get on the list and find out more clarifying information.

Employees Eligibility

Eligible employees must be:

  • Australian citizens, or
  • The holder of a permanent visa, or
  • A protected Special Category Visa Holder, or
  • A non-protected Special Category Visa Holder who has been residing in Australia for at least 10 years, or
  • A Special Category (Subclass 444) Visa holder.

If an employee is accessing support though Services Australia because they have been stood down or had their hours reduced and the employer will be eligible for the JobKeeper Payment, the employee will need to advise Services Australia of their new income.

Where employees have multiple employers – only one employer will be eligible to receive the payment. The employee will need to notify their primary employer to claim the JobSeeker Payment on their behalf. The claiming of the tax free threshold will in most cases be sufficient notification that an employer is the employee’s primary employer.

For more information, read Treasury Fact Sheet for Employees

Payment process

Eligible employers will be paid $1,500 per fortnight per eligible employee. Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top-up the payment. Where employers participate in the scheme, their employees will receive this payment as follows:

  • If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. The JobKeeper Payment will assist their employer to continue operating by subsidising all or part of the income of their employee(s).
  • If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
  • If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
  • If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.

It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.

Payments will be made to the employer monthly in arrears by the ATO.

The first payment will be received by employers from the ATO in the first week of May.

Timing

The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May 2020. Businesses will be able to register their interest in participating in the Payment from 30 March 2020 on the ATO website.

Please reach out to the DPM Tax team if you have questions:
– for existing DPM clients, click here.
– for non DPM clients, click here.

Disclaimer: * The information contained in this site is general and is not intended to serve as advice. DPM Financial Services Group recommends you obtain advice concerning specific matters before making a decision.

Authors

Amelia Jones

B. Comm, CA

Consultant
Melbourne

Connect on LinkedIn

Amelia is a Chartered Accountant and joined DPM in 2017. With more than 15 years’ experience in the accounting industry, she specialises in providing personalised tax, structuring and compliance advice to medical professionals. Amelia thrives on developing long-term relationships with her clients to ensure they are in the best tax position to achieve their personal and professional goals.

Aaron Burton

B. Comm, CA

Partner
Melbourne

Connect on LinkedIn

Aaron joined DPM in 2001 and was appointed Tax Partner in 2013. He was admitted to the Institute of Chartered Accountants as a full member in 2005. Aaron advises clients ranging from individuals to large complex structures and businesses, and specialises in tax structures, compliance and wealth creation.