JobKeeper Payment - Update
By now most of you would be aware that the Australian Government has announced the "JobKeeper Payment" as an economic stimulus response to the extraordinary climate created for small businesses by Coronavirus.
Here are some of the key points to consider ( my interpretation only ) until we will receive further clarification of the legislation in the next few days. I have also attached the full FAQ provided by the government that outlines the JobKeeper Payment information known to date.
- A business is eligible if they estimate their turnover ( total income ) has fallen or will likely fall by 30 percent or more due to COVID-19. Please note if there isn't a decline in April as you haven't yet seen the effects on your business but there is in May your eligibility would start in the month you become eligible.
- Eligible businesses that elect to participate will receive a payment of $1500 per fortnight per eligible employee that was employed as at 1 March 2020 and continue to be employee
- Self- Employed, Partnerships ( 1 only ) , Beneficiaries ( 1 only ) and Directors ( 1 only) are eligible ( they are not employees).
- Eligible employees include those who were employed as at 1 March who have been stood down or re-employed and are Full-time , Part- Time or Casual ( this is casuals who have been employed for 12 months or more with your business)
- The first pay period under the scheme starts from 30th March 2020 to 12 April 2020. and will be available to 27 September 2020. The $1500 if Gross Wages and tax is to be deducted ( no super).
- The payments will be made to you in arrears commencing early May 2020. Meaning you have to pay the employees upfront for a month then you will be reimbursed in May.
- If you don't have the funds the Govt has recommended approaching your bank to seek credit as they are encouraging lenders to allow you to obtain a loan on the basis of using the funds for JobKeeper payments.
- The original apprenticeship subsidy announced ( i.e. 50% of wages ) will apply for the period 1 Jan 20 to 31 Mar 20 then JobKeeper payments will start 1 Apr if applicable.
- The JobKeeper payment is not income tested but an employee can only receive it from one employer. You must advise your employee that you have nominated them as eligible employees.
- No Superannuation Guarantee payments are required to be paid, but are optional.
- To be eligible the payment must be processed through Xero payroll and reported to the ATO via Single Touch Payroll. We will follow up with instructions with further clarification in due course.
You can register your interest on the ATO website to keep up to date with future announcements
Wishing you all the best at this hard time,