The Federal Government announced its third round of economic stimulus package for the coronavirus on 30 March 2020. Businesses will receive a subsidy of $1,500 per fortnight for each eligible employee for a maximum period of 6 months. This will help businesses retain staff during the downturn in trading.
The first payment will be made on 1 May 2020 (with backpay from 30 March 2020).
The JobKeeper payment will be passed onto each employee through the business payroll. Superannuation guarantee is not mandatory on the JobKeeper payment.
Eligible businesses are:
– Turnover reduced by more than 30% or 50% relative to a comparable period a year ago (of at least a month); or
– Not for profit entities (charities) and self employed individuals (businesses without employees) that satisfy the turnover tests are also eligible.
Eligible Employees are:
– Must have been employed as at 1 March 2020;
– Currently employed (including those stood down or re-hired);
– Are full-time, part-time or long-term casual (casual employed regularly for more than 12 months) as at 1 March 2020;
– At least 16 years old;
– Are an Australian citizen, permanent visa holder and various other visas; and
– You can only receive this from one employer.
To apply for the JobKeeper payment, businesses need to:
– Register their interest on the ATO website from 30 March 2020. https://www.ato.gov.au/general/gen/JobKeeper-payment/
– The ATO will (at a later date) require information on the eligible employees and evidence of the drop in turnover. We are yet to see what forms / documentation will be required by the ATO. There may be monthly reporting requirements to continue eligibility.
The Coronavirus situation is changing quickly and we will keep you updated as more information and the final details are released.
Please contact us to find out more. The team at EMspire Advisory are experienced accountants in Sydney and wold like to help you create, grow and succeed in business.
Please note that this information is not specific and is general in nature and cannot be relied upon as advice. Please contact us for specific advice for you and your circumstances.