The Commonwealth Government’s JobKeeper package has now been passed by Parliament. Under the JobKeeper payment, businesses significantly impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. This assistance will help businesses to keep people in their jobs and re-start when the crisis is over.
Eligible businesses will be able to claim a fortnightly payment of $1,500 per eligible employee for six months from 30 March 2020. Payments to employers will be made monthly in arrears, with the first payment scheduled for May 2020.
Employers (including not-for-profits) will be eligible for the subsidy if, at the time of applying:
- their business has an annual turnover of less than $1 billion and they estimate their turnover has fallen or will likely fall by 30 per cent or more; or
- their business has an annual turnover of $1 billion or more (or is part of a consolidated group for income tax purposes with turnover of $1 billion or more) and they estimate their turnover has fallen or will likely fall by 50 per cent or more; and
- their business is not subject to the Major Bank Levy.
Self-employed individuals will be eligible to receive the JobKeeper Payment where they meed the relevant turnover test.
Eligible employers will be paid $1,500 per fortnight per eligible employee. Eligible employees will receive, at a minimum, $1,500 per fortnight before tax. Where an employee usually earns over $1,500 per fortnight before tax the employer is able to top-up the payment.
No superannuation guarantee payments are required to be paid on any additional payment made because of the JobKeeper Payment.
The subsidy is effective from 30 March 2020, with the first payments to be received by employers in the first week of May.
To discuss how to maximise the relief available to you and your business, please contact us.