Prime Minister Scott Morrison, on 30/03/2020, has announced a $130 billion support package to help employers and employees.
The idea behind these measures is that employers will retain their employees and have them working where they can. However, if there is no work available due to Coronavirus related downturn or closures, then these employers retain their employees on this payment for up to six months so that employees stay connected to their employers.
There will be a $1,500 per fortnight Job Keepers Payment.
- This will be paid to the employer, who will then pay their employee;
- An individual cannot received the Job Seekers Payment as well as the Job Keepers Payment;
- This is a flat rate for everyone;
- This applies to full time workers, part time workers, sole traders and casual employees that have been with their employer for more than 12 months;
- Any employee that has been stood down from 1 March 2020 can be eligible for these payments;
- Payments will be made from 1 May 2020 onwards, however, they will be backdated to today, 30 March 2020;
- Employers can start making these payments as of today from their own funds, and they will be reimbursed back to today’s date;
- Every business will be eligible where they have seen a decrease in turnover of 30% of more (50% if your business turnover is more than $1.1 billion);
- Employers must register with the Tax Office to receive these payments (businesses can do this themselves directly on the ATO website, alternatively your bookkeeper can provide assistance, if you do not utilise the services of a bookkeeper, your accountant can provide this assistance);
- The ATO will have a registration button on their website ato.gov.au very soon;
- The Single Touch Payroll system will be used to process payments to employees;
- New Zealander’s on a 444 Visa will be eligible for these payments;
- This is intended to be a scheme that lasts for up to six months;
- Employers can top up their employees wages;
- There is no Super Guarantee paid on this payment.