Yesterday (30/03/2020), the Prime Minister and Treasurer jointly announced a new $130bn JobKeeper payment of $1,500 per fortnight per eligible employee which will be paid to employers, which in turn subsidises employee costs. Those receiving the JobSeeker payment will not be eligible for the JobKeeper payment which is designed to keep those currently employed in their jobs.
It will apply to all employers, including sole traders, subject to demonstrating a 30% decrease in revenue for businesses with a turnover less than $1.0bn, and a 50% decrease in revenue for employers with revenue over $1.0bn. The decrease must be as a result of the Coronavirus and is available to all full-time, part-time and casual workers (casuals who have been employed for more than 12 months) who were employees of the business as at 1 March 2020.
This announcement requires a legislative amendment, which will necessitate the recalling of Parliament. The Leader of the Opposition has agreed to this, but Parliament will not be recalled this week, with suggestions it could be next week.
At this stage, there is only the ability for Employers seeking to claim to register their intent with the ATO online: https://www.ato.gov.au/job-keeper-payment/
Further information is available here:
Information for employers
Information for employees
Please note we have not yet received guidance on how the JobKeeper payment will be treated from a tax viewpoint and we will update you as soon as the information is to hand.
In the meantime, should you have any questions or need any help applying for, or ensuring you receive all available assistance, please reach out to our team at Rose Partners and we will endeavour to do our best to assist.
Stay Safe.
