CATO News

JOBKEEPER WAGE SUBSIDY UPDATE

Thu, April 02, 2020 9:28 AM | Anonymous member (Administrator)

The summary below has been provided by CATO's external accountant who is available to members if further assistance is required.

  • The information was correct at 01 April 2020.

UPDATE: The Federal Government has announced a $130 billion wage subsidy to support businesses to stay in business and keep Australians in work through the Corona Virus pandemic.

The JobKeeper Payment will support employers to maintain their connection to their employees. These connections will enable business to reactivate their operations quickly – without having to rehire staff – when the crisis is over.

Under this JobKeeper payment:

  • The Government will provide $1,500 (before tax) per fortnight per employee for up to 6 months provided that the turnover of the business has decreased by at least 30% and turnover is less than $1 billion (or a 50% decrease if turnover is $1 billion or more).
  • Employers must elect to participate in the scheme by making an application to the ATO.
  • The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May 2020.
  • The scheme will be available to full-time, part-time workers, sole traders, and casuals who have been with their employer for more than 12 months, provided that the employees were on the books on 1 March 2020.
  • Employees who may have been stood down or even retrenched after 1 March 2020 may still be eligible.
  • Employers must report the number of eligible employees employed by the business on a monthly basis. For most businesses, the ATO will use Single Touch Payroll data to pre-populate employee details.

Businesses without employees, for instance sole traders, can also register for the JobKeeper Payment and will need to provide a monthly update to the ATO to declare their continued eligibility for the payments.

CLICK HERE to download the Federal Government issued JobKeeper fact sheet.



Powered by Wild Apricot Membership Software