You will no doubt have read or heard about the Federal Government’s latest stimulus package announced yesterday – the $130 billion JobKeeper Payment

Summary

• The JobKeeper Payment is a subsidy to businesses that is designed to keep more Australians in jobs through the course of the coronavirus outbreak.
• The payment will be paid to employers for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.
• The maximum payment period at this stage will be six months
• Where a business has stood down employees since 1 March, the payment will help them re-employ those employees if they choose.
• Employers will receive a payment of $1,500 per fortnight per eligible employee
• Every eligible employee must receive at least $1,500 per fortnight from their employer
• The payment to the employee will be subject to PAYG Witholding tax
• The program will commence from 30 March 2020, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the Australian Taxation Office.
• Eligible businesses can begin distributing the JobKeeper payment immediately and will be reimbursed from the first week of May.

 Eligibility

• Eligible employers are those with annual turnover of less than $1 billion who self-assess that they have a reduction in revenue of 30 per cent or more, since 1 March 2020, over a minimum one-month period.
• Employers with an annual turnover of $1 billion or more are required to demonstrate a reduction in revenue of 50 per cent or more to be eligible. Businesses subject to the Major Bank Levy will not be eligible.
• Eligible employers include businesses structured through companies, partnerships, trusts and sole traders – Not for profit entities, including charities, will also be eligible.
• Full time and part time employees, including stood down employees, will be eligible to receive the JobKeeper Payment.
• Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the Payment.
• An employee will only be eligible to receive this payment from one employer.
• Eligible employees include Australian residents, New Zealand citizens in Australia who hold a subclass 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other).
• Self-employed individuals are also eligible to receive the JobKeeper Payment.
• Eligible businesses can apply for the payment online and are able to register their interest via this link –  https://www.ato.gov.au/Job-keeper-payment/

As more details come to hand, we will provide further information – in the meantime if you have any questions as to how this stimulus may affect or benefit your business, please contact your Smith Feutrill representative or call the office on 03 9854-3200.