Over the past few weeks we’ve heard a lot of people distressed about how the stimulus packages doesn’t include them, so we were happy to hear the latest stimulus package that was announced by Prime Minister Scott Morrison on Monday 30th March 2020 caters for many who were previously not addressed.
The Australian government has been releasing stimulus packages to help ease the burden on Australians in the way of multiple stimulus packages
The $130 Billion Jobkeeper payment assists many people that were previously not covered and attempts to ensure that whilst many businesses have been forced to close that a lot of employees will receive a wage during the time of minimised work. The payment will provide the equivalent of roughly 70% of the national median wage. In many areas it will completely replace a person’s wage, and in some cases increase it.
Key points about this latest announcement:
- Employees will receive a flat payment of $1,500 per fortnight through their employer before tax.
- Eligibility will be based on Employers that have been impacted by the Covid-19 (Coronavirus) down turn and have had a 30% reduction in revenue for businesses with revenue less than $1 Billion or a 50% reduction for businesses with more than $1 Billion revenue
- The payment is a flat rate, and therefore an employee earning less or more will receive the same amount
- The payment also applies to self employed people
- The subsidy also applies for Not-for-profit entities (including charities)
- The employee needs to have been employed by the employer at 1st March 2020
- The subsidy applies for full time, part time and long term casuals that have been casually employed for over 12 months as at 1st March 2020
- Employees that receive the JobKeeper Payment must report their JobKeeper payments as income. This in turn may affect their eligibility for payments from Services Australia
- First payments to the employer will be made in the first week of May 2020
- Their business has a turnover of less than $1 billion and their business will be reducted by more than 30 per cent; 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
The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.
- are currently employed by the eligible employer (including those stood down or re-hired);
- were employed by the employer at 1 March 2020;
- are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
- are at least 16 years of age;
- are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and
- are not in receipt of a JobKeeper Payment from another employer.
The Treasury website has a couple of great informative pdf guides which outline the obligations of employers and employees to be eligible for JobSeeker Payment:
Employers can register their interest on the ato website here and subsequently will be able to apply online
Bec has a wide range of experience in many areas of accounting, and has a deep focus on assisting clients with personalised accounting services that are designed to suit their exact needs.
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