JobKeeper Payment – Latest Stimulus Package Released
Our government has announced a $130 billion wage subsidy to support businesses to stay in business and keep Australians in work through the Corona Virus pandemic.
The JobKeeper Payment will support employers to maintain their connection to their employees. These connections will enable business to reactivate their operations quickly – without having to rehire staff – when the crisis is over.
Under this JobKeeper payment;
- The Government will provide $1,500 (before tax) per fortnight per employee for up to 6 months provided that the turnover of the business has decreased by at least 30% and turnover is less than $1 billion (or a 50% decrease if turnover is $1 billion or more).
- Employers must elect to participate in the scheme by making an application to 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 2020.
- The scheme will be available to fulltime, part-time workers, sole traders, and casuals who have been with their employer for more than 12 months, provided that the employees were on the books on 1 March 2020.
- Employees who may have been stood down or even retrenched after 1 March 2020 may still be eligible.
- Employers must report the number of eligible employees employed by the business on a monthly basis. For most businesses, the ATO will use Single Touch Payroll data to pre-populate employee details.
- Businesses without employees, for instance sole traders, can also register for the JobKeeper Payment and will need to provide a monthly update to the ATO to declare their continued eligibility for the payments.
- The wage subsidy will cost $130 billion, bringing the current stimulus effort to $320 billion. This represents around 16% of Australia’s GDP.
If you are a business owner (employer) please contact your account manager to discuss your eligibility and assist with your registration for your intention to receive the JobKeeper payment.
At your shoulder and at your service.