Job Keeper Payment Annoucement

You may have seen on the news the government’s new JobKeeper Payment announcement for those businesses affected by Covid-19.
 
Note this is still to be legislated however employers can register their interest with the ATO by clicking here.
 
The payment will be made to the employer for them to then process through their own payroll systems to pay employees.

Details

  • People employed as at 1 March 2020 (Those stood down or made redundant since 1 March can be re-employed and be eligible) will receive a payment of $1,500 pre tax per fortnight

  • To be eligible the Business turnover must have reduced by more than 30% compared to same respective month last year

  • These payments also apply personally to sole traders who can demonstrate the same 30% reduction

  • Proposed for up to 6 months commencing from 30 March 2020.  The employer will be reimbursed the $1,500 from the government 1 month in arrears

  • The employees must continue to be employed and engaged in the business

  • This applies to full-time and part-time employees.  Also to casual employees that have been employed in the business > 1 year as of 1 March 2020

  • The employee must be an Australian Citizen or limited classes of visa

  • Those employees with multiple jobs must nominate their principal employer.  The payment only applies to one employer


Note this is still to be legislated.  In due course the Employers that have registered will need to complete an application to the ATO demonstrating the downturn in their business.
It is important to note employers will not receive the first payment from the ATO before early May 2020 and the ATO will continue to pay the employer 1 month in arrears.   We foresee some businesses will be limited with Cashflow and will struggle to pay the employees during this time.  At the moment the government has suggested further short term bank borrowing.  We hope for further insight on this issue.  

For further information, please click here.

We welcome you to reach out to us if you need assistance or further explanation on this announcement.

Paul AbercrombieAbercrombie Accounting Group