The Details on Australia’s’ $130B “JobKeeper” Package

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Today Scott Morrison announced a new $130b “JobKeeper” package in order to help businesses keep their employees during the coronavirus crisis.

This package will provide a flat minimum payment of $1,500 per employee per fortnight over the next 6 months to businesses affected by coronavirus COVID-19. This amount is equivalent to 70% of the median wage and represents 100% of the median wage for those industries most affected, such as tourism, hospitality and retail.

Employee eligibility

Full-time and part-time employees and casuals (that have been with their employers for at least 12 months) are all eligible for this payment, subject to them being at least 16 years of age. It will also be available New Zealanders in Australia on 444 Visas.

Only currently engaged employees, including those stood down, qualify for the payment. If employees have been retrenched, they would need to be reinstated to qualify for the benefit.

For most employers, Single Touch Payroll data will enable the ATO to pre-populate employee details.

Sole-traders without employees that meet the turnover tests will also be eligible.

Business eligibility subject to “required turnover decline”

Businesses with turnover of up to $1 billion that have seen their revenue drop by 30%, and businesses with a turnover of more than $1 billion that have seen their revenue drop by 50%, due to coronavirus are eligible to register with the ATO for the JobKeeper subsidy.

The turnover decline will require that turnover of a current period be compared with a comparable period of a year earlier (of at least one-month duration).

Not-for-Profit organisations (including charities) also qualify. However, financial institutions that are subject to the Major Bank Levy will not be eligible.

The package commences from today and applies to employees registered with their employer from 1 March 2020. The first payment will be made via the ATO from 1 May and will be backdated to today (30 March 2020).

Businesses can register their interest at the below link:

https://www.ato.gov.au/Job-keeper-payment/

If you are experiencing hardship or financial distress – please reach out to Wilson Accounting, we are here to help!

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