The Government has announced a subsidy program aiming to assist businesses affected by COVID-19 (Coronavirus), to continue to pay their employees’ wages. EFC Group have summarised the key points below.
JOB KEEPER PAYMENT – ECONOMIC STIMULUS PACKAGE COVID-19
WAGES SUBSIDY FOR BUSINESS
Employers will receive a $1,500 per fortnight Job Keeper Payment before tax for each employee they keep on over the next six months. Available to full and part time workers, sole traders and casuals who have been with their employer for 12 months or more
Summary for employers & employees:
- Eligible businesses can apply for the payment online and are able to register their interest via ato.gov.au from 30 March 2020 and provide supporting information demonstrating a downturn in their business
- A business must have a reduction in revenue of 30 per cent or more since 1st March 2020 over a minimum one-month period.
- Eligible employers will receive the payment for each eligible employee that was on their books on 1st March 2020.
- Eligible employers who have stood down their employees before the commencement of this scheme will be able to participate.
- Eligible employers will be those with annual turnover of less than $1 billion.
- Eligible employers include businesses structured through companies, partnerships, trusts and sole traders and not for profit entities, also for the self-employed.
- The eligible employers must pay the eligible employees at least the $1,500 payment per fortnight, even if their regular wage per fortnight is less than $1,500.
- The fortnightly pay will be issued from 1st May 2020 and backdated to 30th March 2020. The payments will be delivered through the ATO.
- It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.
- In circumstances where an employee is accessing support though Services Australia because they have been stood down or had their hours reduced and the employer will be eligible for the JobKeeper Payment, the employee should advise Services Australia of their change in circumstances online at my.gov.au or by telephone.
Additional Key Points:
- If an individual’s partner earns $48,000 or more they are ineligible to receive the JobSeeker payment (a supplement of $550 a fortnight) and Coronavirus supplement (a one off payment of $750 to eligible income support recipients) that was announced in the Government’s first economic stimulus package.
- On 30th March 2020, the Australian Banking Association announced that banks will extend the 6-month loan repayment deferral package to 30,000 more businesses.
To register for the Job Keeper Payment & receive updates as they occur, please visit: https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper
Please note this legislation has not yet been passed, for more information and full details, visit: Treasury Supporting Businesses Fact Sheet
EFC Group initiated our Business Continuity Plan on the 10th March 2020 in response to a worst-case scenario for COVID-19. Our aim remains for the disruption to our clients to be at an absolute minimum. That service will be delivered remotely by email and telephone as we’ve taken precautionary measures to ensure we provide ongoing and consistent support for our clients indefinitely. Please contact our office via phone or email if you have any queries or require assistance.
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- JOB KEEPER PAYMENT – ECONOMIC STIMULUS PACKAGE COVID-19 March 31, 2020
- Government COVID-19 Economic Stimulus Package March 17, 2020
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