Prime Minister Scott Morrison has announced a $130 billion package to support workers’ wages through the coronavirus crisis.
The “Jobkeeper” subsidy will be worth $1500 a fortnight. The government will pay employers to pay their employees,” he said.
“Our goal is to protect lives and livelihoods of Australians to protect and preserve the economy that we depend on and to get to the other side as well.” The PM said according to the media this afternoon.
Other detail extrapolated from the press release is as follows and us pretty big news for both Employers & Employees
Today the Government has announced further assistance aimed at employers to enable them to keep their employees employed over the next 6 months.
WHAT IS THE JOBKEEPER PACKAGE?
- A wage subsidy from the Government of $1,500 per fortnight per employee for eligible employers/employees
WHO IS AN ELIGIBLE EMPLOYER?
- Small to medium businesses whose turnover has fallen by 30% or more as a result of the Coronavirus
- Employers with turnover above $1 billion, whose turnover has fallen by 50% or more
WHO IS AN ELIGIBLE EMPLOYEE?
- Part time employees
- Full time employees
- Casual employees who have been with their employer for more than 12 months
- Sole traders
Please note that in order to be an eligible employee, they must have been on the books as at 1 March 2020.
WHEN DOES IT COMMENCE?
- The first payments will commence from 1 May 2020. These payments will be backdated/backpaid for eligible businesses from today’s date.
HOW DOES IT WORK?
- This payment will be administered by the Australian Taxation Office (ATO)
- Employers who believe that they qualify should register with the ATO
- It is hoped that employers will continue to cover the employees wages prior to receipt of the Government subsidy. They will then be reimbursed with back payments by the ATO from 1 May 2020.
- All employees will be eligible for the $1,500 payment from the ATO regardless of their current wages. Employers may then top up the employees wages (depending on circumstances)
- The employee may continue to work in the business whilst receiving this payment.
- There is no superannuation guarantee on the government’s $1,500 payment
- The amounts declared to the ATO by the employer will be verified through Single Touch Payroll (STP)
For Full details CLICK HERE for the ATO Site
There is also a very good government fact sheet from The Treasury CLICK HERE
WHAT SHOULD I DO NOW?
- If you are an employee who has recently been stood down or about to be stood down, we suggest you contact your employer to ask whether they will be part of the Government’s ‘Jobkeeper Program’
- If you are an employer who meets the criteria above, we suggest that you contact either the ATO or your own accountant.
Please note that this information has been prepared from the Prime Minister’s recent press conference and is subject to change as further details emerge and is provided as information to the best of our knowledge is factual. Detailed guidance should be sought from your own professional sources.