Prime Minister Scott Morrison has announced a third and the largest coronavirus support package – a $130 billion economic stimulus package. In this package, businesses will receive a fortnightly wage subsidy up to $1,500 per employee.
The so-called JobKeeper payment is designed to keep people in work and the Government expects up to 6 million people will access a $1,500 fortnightly wage subsidy.
How will it work?
Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.
Employers will be under a legal requirement to pass on the payments they receive to employees that are currently employed by the business or who were employed by the business as at 1 March 2020.
Who is eligible?
Employers that have a turnover of less than $1 billion and have experienced a 30% decline in their turnover compared to last year would be eligible to receive the JobKeeper Payment. (For businesses with a turnover greater than $1 billion, the reduction in turnover threshold compared to last year is 50%.)
Businesses with employees that have experienced the 30% (or 50%) reduction in turnover can receive a subsidy payment for each employee that meets the following key criteria:
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the employee was employed by the business as at 1 March 202;
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the employee is currently employed, was stood down or re-hired by the employer;
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the employee is a full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
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the employee receives at least $1,500 per fortnight before tax (if employees do not currently receive this wage, employers are entitled to supplement the employee’s wages to meet this eligibility requirement); and
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meet other eligibility requirements, such as age, citizenship and the employee is not receiving another JobKeeper payment.
How will employers receive payments?
To receive the JobKeeper payment, eligible employers must:
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register an intention to apply on the ATO website;
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Ensure that each eligible employee receives at least $1,500 per fortnight before tax (employees that do not receive this minimum payment must be paid a top-up);
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Notify all eligible employees that they are receiving the JobKeeper Payment; and
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provide information to the ATO on a monthly basis
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Provide the ATO with information on the employees that are eligible to receive the payment. (Single Touch Payroll data will be used to pre-populate the employee details for most businesses.)