JobKeeper Payment

The economic impacts of the Coronavirus pose significant challenges for many businesses – many of which are struggling to retain their employees.

Under the JobKeeper Payment, businesses significantly impacted by the Coronavirus outbreak 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. For employees, this means they can keep their job and earn an income – even if their hours have been cut.

Here is a summary of what you need to know about the JobKeeper Payment:

• It is worth up to $1500 a fortnight, per employee
• Sole traders are eligible
• To be eligible, the turnover of a business will need to have fallen by 30% or more, or in the case of a business with an annual turnover of more than $1 billion, by 50% or more. This is to be measured over a MINIMUM one-month period to a comparable period a year ago
• If an employee earns less than the $1,500, the government will effectively be subsidising their entire wage. If an employee earns over $1,500 per fortnight, the employer will need to contribute the excess above or reduce the employee’s remuneration down to $1,500. (Note employees remuneration can only be reduced where their work hours have been reduced or have been stood down with pay)
• Employee has to have been employed on March 1 to be eligible (even if stood down since that time)
• The government will backdate payments from 30th March 2020 with payments to be released from early May
• New Zealanders on the 444 visa will be included
• All other temporary visa holders will not, although conversations are “under way”
• It does not include superannuation
• It will be delivered through existing systems at the ATO
• It will cost $130 billion over six months.

Click here for a PDF SUMMARY OF FEDERAL AND STATE GOVERNMENTS’ ECONOMIC MEASURES AS OF 30TH MARCH 2020.