The Government has announced a “JobKeeper” payment relief measure to subsidise wages for all eligible businesses. The amount of subsidy is $1,500 per fortnight, per eligible employee, which works out to be 70% of the median wage in Australia.
To be eligible for JobKeeper payments, your business must:
• have a reduction in turnover of 30% or more compared to a year ago (50% reduction for businesses greater than $1b in turnover)
• not be subject to the Major Bank Levy
• have been in employment relationships with the eligible employees as at 1 March 2020
• confirm that each eligible employee is currently engaged (ie not stood down), and
• meet turnover tests if you are a not-for-profit or self-employed individual.
You can register your interest via the ato.gov.au website, and once it is ready, fill in an online application form to register for the payments. During the registration process, you will have to identify the eligible employees and provide monthly updates to the ATO. All eligible employees must receive, at a minimum, the amount of $1,500 per fortnight, before tax.
Self-employed businesses will be required to provide their ABN for their business and nominate an individual to receive the payment. The nominated individual must provide his/her TFN and provide a declaration to recent business activity.
If you have any questions regarding this announcement, please do not hesitate to contact us.
