The Australian Government has announced that wage subsidies will be paid to businesses significantly impacted by the Coronavirus.
The legislation/law is being drafted and needs to pass Parliament. No further updates/guidance is available at this time.
The Government will pay businesses $1,500 per fortnight per employee for up to 6 months. The aim of the JobKeeper Payment is to help businesses keep staff and enable them to resume operations more quickly when the crisis is over.
Register your interest by clicking on the link below:
https://www.ato.gov.au/general/gen/JobKeeper-payment/
Eligible employers:
- Business turnover will be reduced by over 30% relative to a comparable period a year ago (of at least a month)
- As of 1 March 2020 the business had engaged eligible employees
- Self-employed individuals (businesses without employees) will need to meet reduced turnover tests
Eligible employees:
- Currently employed by the eligible employer (including stood down employees)
- Was employed as of 1 March 2020
- Is employed full-time, part-time or as a long-term casual (a casual employed for over 12 months as at 1 March 2020 and working for the employer on a regular basis)
- Is at least 16 years old
- Is an Australian citizen, permanent visa holder, Protected Special Category Visa holder, a non-protected Special Category Visa holder (residing continually in Australia for 10 years or more), or a Special Category (Subclass 444) Visa holder
- Is not receiving a JobKeeper payment from another employer
Please note that employees who receive the JobKeeper payment will need to notify the Australian Taxation Office (ATO) as these payments are taxable income and so may affect eligibility for other income support.
How it works:
- Eligible employers will receive payments of $1,500 per fortnight per eligible employee
- Employers are legally bound to pass this full amount (before tax) on to their employees
Employees will receive this payment as follows:
- Employees who ordinarily receive $1,500 or more (before tax) per fortnight – Their employer will continue to pay them their regular wage with the JobKeeper payment assisting their employer by subsidising all or part of their income (any wage over the $1,500 will be payable by the employer)
- Employees who ordinarily receive less than $1,500 (before tax) per fortnight – Their employer is legally bound to pay them the full JobKeeper payment amount of $1,500
- Employees who have been stood down – Their employer must pay a minimum of $1,500 (before tax) per fortnight
- Employees who were employed on 1 March 2020, with employment subsequently ceased, and then re-engaged by the same eligible employer – Their employer must pay a minimum of $1,500 (before tax) per fortnight
Payments will be made to the employer monthly in arrears by the ATO. 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 commence in the first week of May 2020 and will be backdated to 30 March 2020.
Click on the below link for further information:
