The federal government’s $130 billion jobkeeper wage subsidy is designed to hedge the impact of the Covid19 pandemic. The scheme is an incentive for businesses to retain employees so they can bounce back quickly once the pandemic is over.
Eligible businesses get a wage subsidy of $1,500 per employee per fortnight. This is $19,500 per employee over the life of the scheme.
Even self employed business owners like sole traders, independent contractors and company directors who are not on payroll can be eligible for the jobkeeper scheme. However, only one self employed person per business can be nominated for the benefit.
To be eligible for the jobkeeper scheme, the business must satisfy the below conditions:
Self employed persons like independent contractors, sole traders, company directors who are not on a payroll, partners in partnerships, beneficiaries in trusts, and shareholders of companies can also be eligible for jobkeeper scheme.
To be eligible for the Jobseeker allowance, the following conditions must be met:
Where an eligible business has more than one partner or director who is eligible for jobkeeper, only one partner or director can be nominated for the jobkeeper scheme.
Therefore, if you are in a partnership or have other directors or trust beneficiaries, you need to decide which person should receive the payments.
The jobkeeper scheme comes with great due diligence onus on the applicants and with heavy penalties for any attempt to game the system. There are strict compliance, monthly reporting, and anti-avoidance provisions in operation for the Jobkeeper payments.
It is highly advisable to consult with your accountant to determine your eligibility and compliance requirements.
Contact Tax Return Perth today for a free online appointment, and for any help or queries