The biggest in Australia’s History
The government has announced $130 billion to fund a new JobKeeper payment with the aim to keep employees employed.
Businesses will receive a fortnightly wage subsidy of up to $1,500 per employee as part of a Federal Government bid to prevent millions of people from losing their jobs to the coronavirus pandemic.
Employers that are eligible to receive the $1,500 fortnightly payments include:
- Businesses with a turnover of less than $1 billion that have a reduction in revenue of 30% or more since March 1 compared to prior year (Period covered >1 month);
- Businesses with a turnover of $1 billion or more that have a reduction in revenue of 50% or more since March 1
- The business is not subject to the Major Bank Levy – ANZ, Commonwealth, NAB, Macquarie and Westpac
Employees that are eligible for the wage subsidy include:
- are currently employed by the eligible employer (including those stood down or re-hired);
- were employed by the employer at 1 March 2020;
- are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
- are at least 16 years of age;
- 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; and
- are not in receipt of a JobKeeper Payment from another employer.
These employees may be;
- Full-time workers
- Part-time workers
- Casuals who have been with their employer for at least 12 months
Sole Traders and self-employed may also be eligible for these payments to keep their businesses going.
How will it be paid?
This is still being finalised, but, what we do know is the payment will be to the employer who then pays the employee the full $1,500. The employer will be required to report the employee payments to the ATO and update the ATO on this.
The first payment will be paid in May, with any employee wages paid up until then reimbursed. Meaning, if you keep paying your employees throughout April you will be reimbursed at the $750 per week per employee for each eligible employee.
If the employee wage is less than $1,500 a fortnight, the employer is still required to pay the full amount.
If the employee wage is more than $1,500 a fortnight, the employer may be required to pay the difference. This is still being legislated with further details to be provided.
Other Key Notes
Your employee is only required to continue to engage in the business and to create innovative ways to add value. The term engage is not yet defined so we anticipate further definition one the legislation is enacted.
For your Employees
If your employee(s) receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.
How to apply?
Businesses eligible for the wage subsidy will be able to apply to the Australian Tax Office (ATO) via the ATO’s JobKeeper page.
POP can attend to the registration process to ensure you are getting the full government support.
What do I need to do?
If you need assistance, please reach out to our friendly accountants on 1300 180 630 or if you would like us to give you a call, Book in your 30 minute consultation for $50 to get the answers you need today