What’s the difference between the JobKeeper payment and the JobSeeker payment?
The JobKeeper stimulus payment is issued to businesses affected by COVID-19 to allow them to pay their employees a wage while they are shut down or at reduced capacity.
The JobSeeker payment is a payment on offer to Australians who do not have employment.
You can only receive either the JobKeeper or JobSeeker payment – you can’t receive both.
Who is eligible for the JobSeeker payments?
It is important to note that not everyone who has been let go by their employer is eligible to apply for JobSeeker payments.
Here are the main criteria:
- you’re between 22 and Age Pension age
- you meet residence rules
- your income and assets are under the test limits
- you meet the definition of unemployed
The partner income test has also been increased to $79,000 which means that you will still be eligible if you partner remains employed and earns less than this amount.
Depending on your circumstances you may not be entitled to JobSeeker payments.
To apply for the JobSeeker payments you need to:
- Log in to your myGov account, if you do not already have one you can create one.
- If you already have a Centrelink account you will need to link this to your myGov account. If you do not have a Centrelink account, you will need to go through the sign up process which involves proving your identification over the phone.
- Once you can access your Centrelink account via myGov you can start the application process. You will need a number of documents which will vary depending on the claim you are making. Importantly, most applicants need letter from their previous employer confirming they are no longer employed.
- Finally, you should familiarise yourself with the income supplement options available to you as they vary depending on your individual circumstances.
For more information regarding JobSeeker click here
On how to register for JobSeeker click here
Australian Tax Office will make payments to businesses affected by COVID-19 that allows them to pay their employees a wage rather than terminating their employment.
Each eligible individual will receive $1,500, per fortnight for up to six months. JobKeeper payments begin in the first week of May but are backdated to 30 March.
Please note, if the individual does not normally receive $1,500, they will effectively receive a pay rise funded by the stimulus package.
Payments will be taxable income to individuals and are subject to tax at marginal tax rates.
The payments of ordinary wages will still be subject to superannuation at 9.5%, however, the top up payment (pay rise) will not be subject to super.
Who is eligible for JobKeeper Payments?
Any full time or part time employees of a business affected by COVID-19 could be eligible. (You must have been employed by your employer on or before 01 March 2020). Casual employees who have been with their employer for more than 12 months are also eligible.
Eligibility for JobKeeper stimulus payments is determined on the employer.
The basic eligibility rules for businesses are:
- The business has a turnover of less than $1billion AND it has reduced by more than 30% relative to the same time last year, or
- The business has a turnover of more than $1billion AND it has reduced by more than 50% relative to the same time last year, and
- They are not subject to the Major Bank Levy.
How to apply for the JobKeeper Payment?
Your employer needs to apply for the JobKeeper payment. If they’re eligible, the ATO will issue the JobKeeper stimulus payment to them. Then, they pay it to you the same way that normal salary and wages are paid.
If you have more than one job you can only receive the JobKeeper payment from one of them.
To register for JobKeeper payment click here