The biggest economic package in Australian history has been passed and the JobKeeper payment will flow. The Morrison government legislated its historic $130 billion wage subsidy package delivering $1,500 per fortnight to an estimated 6 million workers, put in place to help businesses ride out the COVID-19 pandemic.
It is important that employers are aware that there are also restrictions and potential large penalties for breaking the rules. This program will be subject to the ATO compliance and audit activities. In addition, the ATO will cross-check payments with Services Australia data, and data from other government agencies to ensure there is no double up or ineligible payments to individuals.
The JobKeeper Payment will also be available to the self-employed.
The subsidy has been put in place to encourage businesses to keep employees employed and connected to the business in hope that when circumstances change, employers can quickly recover and reactivate their operations.
The payment is based on a flat rate to all employees. It is equivalent to about 75% of median wage (close to 100% median wage of the most impacted sectors ie retail / tourism etc) and will based on the period between Monday 30 March, 2020 and Sunday 27 September, 2020.
Eligible employers must decide which employees are eligible and provide detail to the ATO. This will be administered through the ATO to take some pressure off Centrelink.
The attached provides more information and below are useful fact sheets for your convenience.
Useful Government Fact Sheets
JobKeeper Information: https://treasury.gov.au/coronavirus/jobkeeper
To Register for the JobKeeper Payment: https://www.ato.gov.au/general/gen/JobKeeper-payment/
Employer Fact Sheet: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_Info_for_Employers_0.pdf
Employee Fact Sheet: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_Info_for_Employees_0.pdf
Frequently Asked Questions for Employers and Employees (and sole traders) https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions_0.pdf
Fact Sheet Supporting Businesses: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_0.pdf
There are still a lot of questions in relation to some of the finer detail around execution and templates which we will be looking to answer and provide for all of our clients.
We have put all of our tools together on one platform to help you navigate your way through COVID-19. We are providing complimentary access to it for our clients and Bespoke VIPs but are charging a small fee for non-clients of $297+GST.
Go to www.90dca.com.au/covid19 and scroll down the page to see the full breakdown of what is included.
Disclaimer – the above information provided is general in nature and does not constitute specific or legal advice. Please seek specific accounting or legal advice on specific circumstances. COVID-19 and the relevant impacts on workplaces are changing frequently and so updated health and government websites should be relied upon at all times. If you have more questions about COVID-19 and/or your individual workplace or team specifically, contact firstname.lastname@example.org and either Kylie or myself will try and help you through your query.