The Federal Government, on 30 March 2020, announced the introduction of the JobKeeper stimulus package in response to the COVID-19 pandemic. The package aims to help out eligible struggling businesses, by assisting with the wage bill for employees.
The goal of the JobKeeper package is to keep people in jobs and soften the economic impact of the coronavirus. For businesses, it is there to help pay the wage bill, instead of having to stand down or terminate staff.
Businesses with an annual turnover of under $1 billion per year who self-assess a reduction of 30% or more in a one-month period are eligible.
Employers who are eligible include companies, partnerships, trusts and sole traders. Not-for-profits and charities will also be eligible.
If you think your business is eligible, an application can be made on the Australian Taxation Office’s website.
What does the JobKeeper package provide?
From 1 March 2020, employers will receive $1,500.00 (before tax) per fortnight for their eligible employees.
The Australian Taxation Office is expected to make the first payments within the first week of May 2020.
Whom are ‘eligible employees’?
Full-time and part-time employees, including those already stood down, are classified as eligible employees.
Casual employees are eligible if they have been employed for at least 12 months.
The payment covers Australian citizens, Australian residents, self-employed individuals, New Zealand citizens living in Australia on a 444 class visa and migrants who are eligible for Youth Allowance.
Employees can only receive this payment from one employer.
What does this mean for your business?
If you satisfy the criteria for an eligible business, and if you have eligible employees, you are able to make an application to the Australian Taxation Office. That should be done as soon as possible.
If you are unsure whether you satisfy the criteria, or if you require specific legal advice about your business, please contact Aaran Johnson on firstname.lastname@example.org or Simon Kumar on email@example.com or by phoning 02 4626 5077.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.