Explaining the JobKeeper Payment
If your buiness has been significatly impacted by the Coronavirus you will be able to access the JobKeeper subsidy to continue paying your employees. You will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020 for a maximum of six months.
Businesses with a turnover under $1 billion that have seen their revenue fall by at least 30 percent will be eligible. Busineses with a turnover over $1 billion will need to have sutained a 50 percent reduction, comparable to a relative period a year ago. The payment will cover employees who are full or part time or casual with at lease 12 months of service as of March 1 this year, and will have their wage subsidised by a flat rate of $1,500 a fortnight, irrespective of their normal pay packet.
For businesses still operating they must continue to pay their staff their regular income but will receive the $1,500 payment to subsidise each wage and they will continue to have to pay the superannuation guarantee on their employee’s income.
For businesses that have stood down employees, employers will be required to pay them a minimum of $1,500 a fortnight before tax. Paying the superannuation guarantee is at the employer’s discretion in this case. Workers earning less than $1,500 a fortnight, stand to receive a pay rise. A part-time worker being paid $1000 a fortnight would still attract the full $1,500 subsidy with the employer not allowed to pocket the difference.
The scheme also applies to workers who have been retrenched rather than stood down. If they are rehired by their employer, they will receive the $1,500 subsidy also. Employers whose business has been shut down on government orders will receive money to pay employees who cannot do any meaningful work or attend their workplace.
The employer will be responsible for applying to the ATO to receive subsidies and will need to show they have suffered a downturn. They will also need to report monthly how many employees are being supported by the scheme.
Employees will need to tell Centrelink of the income, if they had applied for the JobSeeker payment announced in the first stimulus package.
This time, New Zealanders working in Australia will be eligible to attract the wage subsidy but other foreigners here on temporary visas will not.
This new measure still needs legislation, but once passed the sbsidy started immediately on March 30. The ATO will pay the subsidy monthly in arrears to employers with the first payment to be made in the first week of May. This fact sheet will provide more information about the payment.
You can register your interest to receive information as it is released here.
