Almost half the Australian workforce could be paid up to $1,500 a fortnight for six months through the $130 billion JobKeeper wage subsidy scheme. But many employers are giving up before a single payment has been sent.

Key points: Around 900,000 businesses expressed interest in JobKeeper but so far just over 500,000 have signed up to the scheme

Around 900,000 businesses expressed interest in JobKeeper but so far just over 500,000 have signed up to the scheme Businesses are required to pay all their staff at least $1,500 a fortnight to be eligible for a JobKeeper reimbursement

Businesses are required to pay all their staff at least $1,500 a fortnight to be eligible for a JobKeeper reimbursement Many business owners say there are a number of confusing requirements and exclusions that have discouraged them from joining up

Understandably, the most expensive welfare program in the nation's history is having teething problems.

Since enrolments opened at the start of last week, more than 500,000 businesses have signed up, covering more than 3 million employees, according to Assistant Treasurer Michael Sukkar.

But that is barely more than half of the 900,000 businesses that initially expressed interest.

Many are blaming confusing exclusions, uncertainty about which employees will be eligible and the yawning gap between when they must start paying staff and getting reimbursement from the tax office.

Children's entertainer Kathryn Placing is used to holding attention at sugar-fuelled birthday parties. But the Adelaide performer has struggled to navigate the system that aims to pay employers to keep on staff, such as the 12 workers she uses during festivals and events.

"Because our workers are sub-contractors there's nothing we can do to help our staff," she said.

"Some of them haven't earned enough on their ABN (Australian Business Number) with us to qualify for JobKeeper, so they're going to have to go on JobSeeker and we've been having to hold their hands through it financially."

Children's entertainer Kathryn Placing is being forced onto JobSeeker because of the JobKeeper rules. ( Supplied: Marco Catalano )

Mrs Placing and her husband have a partnership, but only one partner can be nominated to receive JobKeeper, so she is aiming to receive the lower JobSeeker payment, previously called Newstart, which was recently temporarily doubled to $1,100 a fortnight.

The scope of the JobKeeper program is even broader, aiming to keep workers 'linked' to employers by providing a $1,500-a-fortnight wage subsidy.

To be eligible for JobKeeper: You are currently employed (including those stood down or re-hired) by an eligible employer

You are currently employed (including those stood down or re-hired) by an eligible employer You were employed by the employer at March 1, 2020

You were employed by the employer at March 1, 2020 You are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at March 1, 2020)

You are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at March 1, 2020) You are at least 18 years of age

You are at least 18 years of age You are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa holder, a non-protected Special Category Visa holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa holder

You are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa holder, a non-protected Special Category Visa holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa holder You are not in receipt of a JobKeeper Payment from another employer Source: JobSeeker v JobKeeper explained, information correct as at April 2, 2020

It supports businesses that have seen their turnover drop by at least 30 per cent for smaller firms and 50 per cent for big companies.

The hope is it will help the economy recover faster when restrictions ease by lessening the level of unemployment, which most forecasts still expect to peak above 10 per cent.

But the liberalised nature of how people are 'engaged' at work – including freelancing, casual work, contracting and the gig economy – has smashed into a system that rewards employees who fall into the neat definitions of permanent full and part-time work.

Pay now, maybe get back later

One employer – with around 1,500 casual employees and 200 permanent staff – is not applying for the program because it cannot get straight answers from the Australian Taxation Office.

"It's all grey," said a person from the company, speaking on condition of anonymity because they are not authorised to discuss the company with the media.

"When [our people] talk to the ATO they'll get a particular answer … but the ATO won't write it down, even in an email."

It seems a so-called 'one in, all in' rule does not exclude seasonal workers, meaning the company would have to pay casual workers logging just a few shifts a year.

"And (the ATO) won't confirm which employees are eligible before you have to pay them — that's the problem," they added, explaining that it could leave the employer permanently out of pocket if it paid staff but was not reimbursed.

The company has opted out of the scheme, meaning casuals will have to apply for the lower JobSeeker payment.

The experience echoes one of the key concerns about applying for JobKeeper.

Businesses originally had to pay staff the $1,500 by this Thursday (April 30), but employees eligibility would not be confirmed, and the subsidy paid, until May.

Australian Small Business and Family Enterprise Ombudsman Kate Carnell welcomed news that small businesses have been given an extension to make payments until May 8.

"Small businesses now have extra time to deal with cash flow pressures as a result of any delays with their financial arrangements," she said in a statement.

Still, some businesses will need to borrow money for the first payments. The four major banks have established special JobKeeper phone lines to help small business fund the gap and have promised to fast-track applications.

Businesses have until May 31, 2020, to formally enrol to claim JobKeeper payments.

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'Continuous change' in a novel scheme

However, other quirks remain as the Government has tried to define the scheme.

Major banks, universities, state and territory agencies and local councils? Out. International workers, 17-year-old casuals? Ineligible.

Staff at AFL and NRL clubs, the organisational wings of the Liberal Party and the Labor Party? In.

Preeti Sharma, senior accountant at Sashi Veale & Associates in western Sydney, is helping small businesses trying to access the scheme.

"The main issue is cash flow," she agreed.

"You could pay April and May (salaries) and not get the money until June."

Most clients are using personal or business overdrafts to fund the gap.

One of the other key problems — "continuous change" — is unlikely to go away, as the Government tinkers with the massive scheme.

"Obviously the Government is trying to keep business on its feet, but they haven't had months to plan," Ms Sharma said.

"It's tough for us, it's tough for them, but hopefully it will have the effect it is hoping for."

Fear factor

Mrs Placing has not touched the welfare system since she became a mother and accessed parenting payments.

Twenty-five years earlier she was briefly on Newstart when between jobs.

"Even when we started out our birthday party business we chose to stay off the support network and work second jobs … rather than draw on that program," she said.

"Probably the key factor would have been the effort-to-reward ratio, like the amount of work that goes into it for almost no money — it just seemed too hard to be worth bothering."

The coronavirus crisis wiping out future income — and the generously-increased levels of support through JobKeeper and JobSeeker — has changed her attitude, but the trepidation remains.

"I get scared of being involved with Centrelink," she said.

"You hear so many stories — robo-debt collections and accidental overpayments and all of the things. I actually get a bit nervous about relying on Centrelink in case there's a problem down the track where I've made a mistake and I'm suddenly in debt to them."