On Monday 30th March, Prime Minister Scott Morrison announced the Government’s plans to introduce the third, and largest, stimulus package in response to the economic impact fighting the COVID-19 pandemic is having on society’s collective livelihoods. This new payment, worth $130b over the next 6 months, is arguably one of the most generous Government measures around the globe. Let’s take a look at the announcement:
- Eligible businesses will receive a fortnightly wage subsidy of $1,500 per employee that meets the eligibility criteria. The aim is to keep employees on the books during the crisis.
- Self-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30 per cent decline in turnover relative to a comparable prior period (of at least a month).To be eligible for the payments your business has to have a turnover less than $1b (also conditions to meet if over this threshold) and your turnover will be reduced by more than 30% relative to a comparable period a year ago (of at least a month).
- Employers MUST ELECT to participate in the scheme. You can apply here.
- If you wish to apply, you are encouraged to apply now via the Australian Tax Office.
- Eligible employers will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer – including full-time, part-time, long-term casuals (been with the business for at least 12 months) and stood down employees.
- Where employees have multiple employers – only one employer will be eligible to receive the payment.
- Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top-up the payment.
- It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.
- Payments will be made to the employer monthly in arrears by the ATO.
- The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May.
Australian Small Business & Family Enterprise Ombudsman, Kate Carnell, is all for the measures, stating,
“We know that staff are the most important asset to a small business and this announcement will come as a relief for many small businesses that have been in the midst of making very tough decisions about their future as a result of the coronavirus.”
We support Aussie business.
Panic and confusion will settle down soon enough and life will need to go on, things may be a bit different for a while, but we know just how resilient small business owners can be. If you do need some extra financial support through this evolving situation, you can view our business loan options here. For more information on the Governments stimulus package click here.
Disclaimer: We did our best to access Government information in an ever-changing environment. Please seek professional advice by Government, the ATO or your Accountant on these matters. See here https://treasury.gov.au/coronavirus/jobkeeper for further information.