JobKeeper payments: wage relief and support for businesses
The Australian Government is offering wage subsidies to help employers retain their employees during the COVID-19 pandemic, and keep employees engaged until the inevitable rebound. Wage relief Eligible businesses (including not-for-profits) who elect to participate in the scheme can expect a wage subsidy of $1,500 per fortnight per eligible employee. The JobKeeper payment is a flat rate regardless of a person’s salary. An employer will continue to receive the JobKeeper payment for each employee while they remain employed. Eligible sole traders will also receive a single payment of $1,500 per fortnight. How it will work Eligible employees whose wages are at least $1,500 per fortnight before tax, will continue to receive their pay as normal. The JobKeeper payment will assist the employer to subsidise all or part of the employee’s income. If an employee usually receives less than $1,500 in income per fortnight before tax, their employer must pay their employee at least $1,500 per fortnight, before tax (regardless of whether the person is working or stood down). Superannuation on the amount that is the difference between an employee’s usual fortnightly income, and the JobKeeper payment, is a discretionary matter for the employer. The JobKeeper payments will also apply in relation to those employees who were employed on 1 March 2020, subsequently ceased employment, and then were re-employed by the same employer. Eligible businesses Under the proposed fiscal package, businesses will be eligible for the subsidy if their: Eligibility for employees Employees will be eligible if they are: What’s next Employers should familiarise themselves with these new measures as well as the relevant legislation, once it has been passed by the Federal Parliament, likely early next month. In the interim, businesses can register their interest in the scheme via the ATO’s website, or wait to apply on-line. Information required by the ATO will include revenue information (declaration of recent business activity), ABN and eligible employee details. For further information on any of the issues in this article, and other workforce measures available to employers because of the effects of COVID-19, please contact our team below.
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