$130 billion JobKeeper payment
On 30 March 2020, the Government has announced a new wage subsidy plan, where employers will receive a $1,500 per fortnight ‘job keeper payment’ before tax for each employee they keep on over the next six months.
The payment will be open to eligible businesses that receive a significant financial hit caused by the coronavirus.
JobKeeper Payment..what we know so far
2. The payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer. The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
3. Where a business has stood down employees since 1 March, the payment will help them maintain connection with their employees.
4. Employers will receive a payment of $1,500 per fortnight per eligible employee.
5. Every eligible employee must receive at least $1,500 per fortnight from this business, before tax, regardless of what they usually earn.
6. The program will commence 30 March 2020, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the Australian Taxation Office.
7. Eligible businesses can begin distributing the JobKeeper payment immediately and will be reimbursed from the first week of May.
8. Eligible employers will be those with annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30 per cent or more, since 1 March 2020 over a minimum one-month period.
9. Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible.
10. Full time and part time employees, including stood down employees, would be eligible to receive the JobKeeper Payment.
11. Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the Payment. An employee will only be eligible to receive this payment from one employer.
12. Eligible employees include Australian residents, New Zealand citizens in Australia who hold a subclass 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other).
13. Self-employed individuals are also eligible to receive the JobKeeper Payment.
14. Eligible businesses can apply for the payment online and are able to register their interest via www.ato.gov.au/general/gen/JobKeeper-payment/
15. The Government will provide updates on further business cashflow support in coming days.
Businesses without employees
What to do next
www.ato.gov.au/general/gen/JobKeeper-payment/
For most businesses, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business.
Further comments
Please contact JDG for assistance with navigating the stimulus packages and determining your eligibility for the tax and business measures. Certain incentives in the packages will only be available for a short period of time, businesses should consider taking action as soon as practicable.
If you have any questions, please contact our office on (08) 7087 2162. |