News
Federal Government announces new coronavirus wage subsidy package
The Government has unveiled a $130 billion wage subsidy for small businesses and sole traders
From early May, wage subsidy payments will begin to flow in
an effort to help an estimated six million workers keep their jobs amid the
COVID-19 pandemic.
The Australian Tax Office (ATO) will administer the scheme
called ‘JobKeeper’, which will see $1500 paid fortnightly to employers, for
each full-time or part-time staff member on their books. Employers will need to
demonstrate that they have lost at least 30% of their turnover due to the coronavirus.
The scheme will be backdated to today, 30 March, and money will begin to be
paid from 1 May.
Sole trader and casual workers with a tenure of more than 12
months will also be entitled to the payments which are expected to last for
around six months. Any employee who has been stood down since 1 March will
still be eligible for the payment, however employees cannot receive JobKeeper
and JobSeeker together.
Employers will have a legal obligation to use the funds to
pay their staff, with single touch payroll functions being the ATO’s way of
tracking the money.
Workers from New Zealand on 444 visas will also be entitled
to the flat payment, as will New Zealanders who reside in Australia and not for
profit organisations.
Anyone interested in expressing interest in the scheme can
register on the ATO website here. The ATO
do not want you to phone them regarding this. Once you have registered your
interest, further updates will be sent to you.
Speak to our team
There are several ways in which we may be able to help. It’s always important to get good advice and that’s particularly true in turbulent times. If you need help please talk to us on 1300 448 303 or use our online enquiry form. We can offer initial consultations, advice and support over the phone if you have any concerns about face-to-face meetings.
And please feel free to share this information with your customers to help them plan their business affairs during these challenging times.
Contact us here for more information about the JobKeeper eligibility criteria and how we can assist you to produce a report to show your business performance over the period.
Date published 31 Mar 2020 | Last updated 31 Mar 2020
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