It has only been a week since the Federal Government announced the second part of their Stimulus package. The treasurer detailed the new JobKeeper payment yesterday. This is much needed news for affected businesses and employees. The package has also received a more accurate name change and is now known as the Economic Response to the Coronavirus.
If you are an affected employer, you should immediately register your interest at:
https://www.ato.gov.au/general/gen/JobKeeper-payment/
If you are an employee, you will receive a notification from your employer.
I have summarised the main points below and provided links to the treasury fact sheets for further details. As always, keep well, stay sane in isolation and please contact me if you have any questions.
The JobKeeper scheme is open to businesses significantly impacted by the Coronavirus and is also available to sole traders. The government will provide $1,500 per fortnight per employee for up to 6 months. This amount is before tax and employers will be required to withhold the appropriate tax per employee.
To be eligible, businesses with a turnover of less than $1 billion will have seen a reduction in their turnover by more than thirty per cent. This is based on a period of at least one month and is compared to a previous period. Payments will commence in the first week of May and will cover the period starting 1 March 2020.
If an employee is still employed and ordinarily receives more than $1,500 per fortnight, they will continue to receive their regular wage and the employer will receive the $1,500 as a subsidy.
If an employee ordinarily receives less than $1,500 per fortnight, the employer must pay the full $1,500 per fortnight.
If an employee has been stood down the employer must pay a minimum of $1,500 per fortnight.
If an employee was employed on 1 March 2020 and was later stood down and then re-employed by the same employer, the employee will receive at least $1,500 per fortnight.
If an employee has more than one employer, they will only receive the payment from one employer. An employee in this situation will need to notify their ‘primary’ employer.
Eligible self-employed individuals will also receive a payment of $1,500 before tax.