JobKeeper payments and super

17 April 2020

JobSeeker payments and super - BUSSQ Super

Mid last week, the $130bn JobKeeper wage subsidy legislation was given a resounding thumbs up by both houses of Parliament. News of which drove the biggest jump in the share market for 40 years.

The legislation is designed to help businesses like yours, keep their employees in their jobs and to ease the financial burden that COVID-19 has inflicted on many small and large businesses alike. Many employers have had to cut back or stand down employees, so to keep Australians in their jobs, and to ensure they can bounce back in the recovery stage as well as stay connected with their employees, the Government will pay a JobKeeper payment, to eligible employers, to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight.

When to pay super on JobKeeper payments

When it comes to paying super to your employees who are eligible to receive the JobKeeper payment, the following three scenarios should give you a good indication of when super is and isn’t applied.

For employees still working they will continue to receive super contributions to grow their retirement savings.

 Scenario 1

 Scenario 2

Scenario 3 

 Earns more than $1,500 per fortnight

 Earns less than $1,500 per fortnight

Stood down with no work

Jay earns $3,000 per f/n

  • Pay wages as per normal

Claim the JobKeeper payment

 

Chris earns $1,000 per f/n

You must pay Chris as follows:

  • Pay normal wages $1,000

  • Top up $500

  • Total $1,500

Claim the JobKeeper payment

 

Rob has been stood down with no work.

  • Pay Rob the full $1,500

Claim the JobKeeper payment

 The full $3,000 IS subject to super.

 

  • Normal pay IS subject to super.

  • The $500 top up is NOT subject to super.

 The full $1,500 is NOT subject to super.

 

Extraordinary times, call for extraordinary measures

It’s estimated that up to six million Australian workers will benefit from the JobKeeper payments and job security at a time when it's needed most. It is also uniquely Australian, as all eligible workers will receive the same wage subsidy.

JobKeeper payments will be available to full and part time workers, sole traders, and in the case of casuals, to those who have been with their employer on a regular and systematic basis for 12 months or more as at 1 March 2020. You can apply to the Australian Tax Office on behalf of the workers that are on your books as of March 1. The payments will flow from the first week of May and be backdated to April 9. If you’ve had to stand down some or all of your employees since March 1, then they are still eligible for these payments.

If your business has been adversely affected by COVID-19 and you believe you meet the eligibility requirements to participate in the JobKeeper wage subsidy program, you can apply on the ATO website.

Stay informed

For the most up to date information on super, please continue to check our website and for more information on JobKeeper payments visit the Treasury website and the Government’s Business website.

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