‘JobKeeper’ Payment makes up Government’s 3rd Stimulus Package
As we try to catch our breath from the Coronavirus chaos, the Australian Government’s latest stimulus package has been announced to provide further relief. This package focuses on the ‘JobKeeper’ payment, aimed at helping businesses keep their staff, which will be a lifeline for many people over the coming months.
Here a quick overview of what it means:
- Employers and sole traders will be able to apply for a $1500 ‘jobkeeper’ flat payment per employer to keep paying their staff.
- To be eligible, most employers will need to prove they have lost at least 30% of income (requirements differ for larger businesses with $1b turnover).
- Those who work for non-for-profits and New Zealanders will also be eligible to the ‘jobkeeper’ payment
- The income threshold for the partner of someone who has lost their job has been raised from $48,000 to $79,000 a year.
- Workers who have already been stood down will be able to access the payment if they lost their job after March 1.
- The ‘jobkeeper’ wage subsidy will be a flat payment through the employer.
- All full time and part time staff are eligible.
- Casuals who worked for more than 12 months at the business are also eligible.
- There is no superannuation payable on this payment.
You should also know:
This payment will be paid in arrears. Employers are encouraged to keep paying employees, with the understanding the government will reimburse them $1,500 a fortnight, per employee, backdated to 30th March 2020.
The payments will flow from the first week of May and will be backdated to 30th March 2020.
Prime Minister Scott Morrison stresses that the engine of the economy needs to keep moving and understands the coming weeks may be tough.
A number of additional resources on the government’s economic response are available at treasury.gov.au/coronavirus. This includes summaries and factsheets for Australian businesses. Businesses can also visit business.gov.au to find out more about how the response complements the range of support available to small and medium businesses.
The ATO offers a range of support services to small and medium businesses experiencing hardship — visit ato.gov.au to find out more.
We are here to help
We know that this is a difficult time for many people, but please remember as bookkeepers we are here to help you navigate the issues this virus is raising. It is our job to stay up to date with new changes and assist you & your business wherever we can.
If you have any questions about stimulus packages or your business in general, please get in touch with us. We are offering free consultations to business owners during this difficult time and can set up a phonecall as we continue to work remotely.
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