The Morrison Government has announced a historic wage subsidy that will keep Australians in jobs as the country tackles the significant economic impact from the coronavirus.
The payment will be open to eligible businesses that receive a significant financial hit caused by the coronavirus.
The payment will be paid to employers for up to six months for each eligible employee that was on the books on 1st March 2020 and is retained or continues to be engaged by that employer.
Where a business has stood down employees since 1st March, the payment will help then maintain connection with their employees.
Employers will receive a payment of $1,500 per fortnight per eligible employee. Every eligible employee must receive at least $1,500 per fortnight from this employer, before tax.
The program will commence from 30 March 2020, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the Australian Tax Office. Eligible business can begin distributing the JobKeeper payment to employees immediately and will be reimbursed from the first week of May.
Employers will be eligible for the subsidy if
- Their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
- Their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and
- The business is not subject to the Major Bank Levy.
We ask clients to please refer to the attached link and read thoroughly the criteria in relation to the JobKeeper payment and the example provided in the fact sheet on the link before contacting us.
This will also require modification to employers payroll systems such as Xero, Quickbooks etc to ensure the JobKeeper payments are treated correctly for superannuation guarantee.
If your employees receive the JobKeeper payment from you, this may affect their eligibility for payments from Services Australia (Centrelink) as they must report their JobKeeper Payment as income.
This continues to be an ever difficult time for everyone, and the team are continuing to do everything they can to assist everyone where possible. With everyone affected in some way, we appreciate everyone’s understanding and patience whilst we work through everyone’s questions.
We are here to support you through these uncertain times, please contact us for any questions you may have.