As more information becomes available to us, we will ensure we keep you as updated as we possibly can. Please call us if you are concerned over these matters and what the affects will be on your business. We want to help you through this challenging time.
JobKeeper Payment – Employer details
Yesterday, the Australian Government announced the $130 billion JobKeeper Payment to assist with the economic impact of COVID-19.
The payment is designed as a wage subsidy paid to 'eligible' employers that employ 'eligible' employees.
For each eligible employee, the eligible employer will receive $1,500 per fortnight (before tax). Eligible employers include businesses structured through companies, partnerships, trusts and sole traders and not for profit entities.
Employers will need to register an intention to apply on the ATO website (see the link below).
Note that this measure will require legislative change. Therefore, the final details are not yet known
If you do expect to meet the basic criteria below, we recommend you register your intention now or contact us to assist you with this.
- You expect that your business turnover will be reduced by more than 30 percent relative to a comparative period a year ago (Note: we have no further details on how this will work at this stage)
- Your employees must have been employed by you as at 1 March 2020 (Note: This will be monitored from your Single Touch Payroll filings)
- It will be optional for the employer to pay superannuation on any additional wage paid because of the JobKeeper Payment
- Your employees are currently employed (including those stood down or those you re-hire if they have been retrenched already)
- Were employed by you as at 1 March 2020
- Have been employed by you on a part time, or full-time basis or a casual employed on a regular basis for no longer than 12 months as at 1 March 2020
- Are at least 16 years of age
- Not in receipt of the JobKeeper Payment from another employer
Other points to note
- 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 (i.e. a top up payment).
- The scheme will be administered by the ATO
- Payments are expected to commence from the first week in May and will be backdated to 30 March 2020
- Notify all eligible employees that they are receiving the JobKeeper Payment.
- You will be expected to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.
- This amount is in addition to the $100,000 cashflow boost previously announced for small to medium sized business.
No doubt these Government measures will assist. Planning best / worst / most likely scenarios for your business activities, key risks and cashflow will be essential.
If you have any questions regarding your business and what all of this will mean for you, please contact us on (07) 3231 9100 and we will be happy to assist you further.