JobSeeker or JobKeeper? Here is what money you are entitled to

About half of Australia’s 13 million-strong workforce will benefit in some way from the government’s unprecedented cash splash in response to the coronavirus pandemic.

The $130 billion in wage subsidies announced on Monday adds to two previous stimulus packages - a $17.6 billion stimulus announced on March 12, targeting welfare recipients and businesses hardest hit by the COVID-19-led shutdown, and a second $66 billion package announced on March 22.

Some payments will start trickling into many people’s bank accounts from Tuesday.

Here’s a brief guide to who gets what.

$1,500 wage subsidy

If you lost your job on or after March 1, and your employer can show it was as a direct result of a business downturn due to coronavirus, then they can access the $1,500 JobKeeper fortnightly payment announced on Monday.

The JobKeeper subsidy, which will be administered through the Australian Taxation Office, not Centrelink, will be paid to your employer, or former employer, not to you.

As at noon on Tuesday, 192,558 businesses had already registered to access the JobKeeper subsidy on the ATO website.

If the business you worked for/are working for has an annual turnover of less than $1 billion - which is about 95 per cent of all businesses in Australia - the owner must prove they have taken a hit of at least 30 per cent in sales due to the pandemic to access the JobKeeper subsidy.

For businesses over the $1 billion threshold, sales must have dropped by at least 50 per cent.

Who is entitled to it?

You do not have to be a full-time worker for your employer to access the subsidy.

Part-time workers also qualify and will still attract the entire $1,500 subsidy.

Sole traders, such as those working the gig economy and casual workers will also attract the subsidy, but only if your employer can show they have had a working relationship with you for at least the past 12 months.

Boss’ obligations

In return for the subsidy, your old boss must put you back on their books and must pass on the full $1,500 to you as a wage, even if they put their business into “hibernation” mode and there is no work for you to do.

Some business owners may choose to top up the government payment to bring your wage back up to what it was before you lost your job, but there is no compulsion for employers to do this.

As at noon on Tuesday, 192,558 businesses had already registered to access the JobKeeper subsidy on the ATO website.

If the business you worked for/are working for has an annual turnover of less than $1 billion - which is about 95 per cent of all businesses in Australia - the owner must prove they have taken a hit of at least 30 per cent in sales due to the pandemic to access the JobKeeper subsidy.

For businesses over the $1 billion threshold, sales must have dropped by at least 50 per cent.

Who is entitled to it?

You do not have to be a full-time worker for your employer to access the subsidy.

Part-time workers also qualify and will still attract the entire $1,500 subsidy.

Sole traders, such as those working the gig economy and casual workers will also attract the subsidy, but only if your employer can show they have had a working relationship with you for at least the past 12 months.

Boss’ obligations

In return for the subsidy, your old boss must put you back on their books and must pass on the full $1,500 to you as a wage, even if they put their business into “hibernation” mode and there is no work for you to do.

Some business owners may choose to top up the government payment to bring your wage back up to what it was before you lost your job, but there is no compulsion for employers to do this.

If your boss offers you back your job, it will be up to you to negotiate with them over how much, if anything at all, you will get paid above the guaranteed $1,500 per fortnight, which is about 70 per cent of Australia’s median wage.

There is no superannuation component to the JobKeeper subsidy.

The subsidy will start to be paid on May 1, but it will be back paid from March 30.

$750 cash payments

There will be two cash payments of $750 each, the first of these due from March 31.

You will be entitled to both these one-off payments if you fall into the following categories:

• You are unemployed and on the JobSeeker allowance (previously called NewStart)
• You are a student on Austudy or Abstudy
• You are a student/apprentice/young job seeker on Youth Allowance
• You qualify for Family Tax Benefit/parenting payment
• You are on an age or disability support pension
• You receive a carers allowance
• You receive a farm household allowance

An estimated 6.5 million Australians are expected to receive these cash payments, the second round scheduled for July 13.

$550 coronavirus co-payment

This will be paid fortnightly only for the duration of the coronavirus crisis, however long that may be.

Payments are scheduled to begin on April 27.

• If you are on the $550 a fortnight JobSeeker allowance you will receive $1,100 a fortnight from April 27.
• If you are a student or apprentice and receiving some type of government subsidy, you will get the $550 a fortnight on top of your existing payments.
• If you are a casual worker, self-employed, a contract worker or freelancer who has lost your income due to the coronavirus, you will get the $550 a fortnight payment, plus you will be eligible for the $550 a fortnight JobSeeker allowance, which would not have been available to you under the old NewStart allowance.
• If you have had to leave your employment to care for someone who has coronavirus you will get the $550 a fortnight payment.

Exceptions

Not everyone who receives some form of financial assistance from the government will get the $550 a fortnight coronavirus payment.

If you are on an age or disability pension, you will continue getting your existing payment, plus the two $750 cash payments but not the $550 fortnightly coronavirus payments.

If you are a New Zealander who arrived in Australia after February 26, 2001, you will not receive the payment.

Nor will people living on temporary visas, including refugees on bridging visas.

If you have lost your job and you have a partner - and they are earning more than $79,762 a year - you will not be entitled to either the coronavirus co-payment or the Jobseeker allowance.

This cut-off point was lifted significantly on Monday as part of the government’s $130 billion stimulus package.

Until Monday the cut-off point for partner earnings was just $48,000.