Coronavirus: JobKeeper wage subsidies for businesses explained
Businesses can receive a $1500-per-fortnight flat payment for every employee they have had on the books since March 1. Here’s what you need to know.
Scott Morrison will seek to save the jobs of up to six million Australians from with a radical $70bn plan to hand out wage subsidies to businesses ravaged by the coronavirus crisis.
The federal government will offer businesses a $1500-per-fortnight flat payment for every employee they have had on the books since March 1 through the Australian Taxation Office.
Full-time and part-time workers, casuals who have served more than 12 months, and sole traders will all be eligible for the payment.
The government is urging laid-off workers to contact their employers and check if they are applying for the scheme, so they can return to the workforce.
It is the biggest economic rescue package in Australian history and the Prime Minister said he was implementing a scheme his predecessors could never have thought possible.
“This is about keeping the connection between the employer and the employee and keeping people in their jobs even though the business they work for may go into hibernation and close down for six months,” Mr Morrison said.
“When the economy comes back, these businesses will be able to start again and their workforce will be ready to go because they will remain attached to the business through our JobKeeper payment.”
The government said that at 5pm almost 8000 businesses had registered to the JobKeeper scheme.
Here is how the historic wage subsidy plan affects you and your family:
HOW MUCH IS IT?
● A $1500 per fortnight flat payment to businesses.
● Businesses will receive JobKeeper payments for every employee they have on the books since March 1.
● Entire scheme will cost $70bn over six months.
●The JobKeeper payment will cover six million Australian workers.
WHO IS ELIGIBLE?
Businesses
● Small and medium businesses that suffer a 30 per cent fall in turnover since March 1.
● Larger businesses (more than $1bn turnover) that suffer a 50 per cent fall since March 1.
● Businesses will self-assess their fall in turnover over a minimum one-month period.
● Businesses that receive the major bank levy are not eligible.
Employees
Any employee who has been on a company’s books since March 1 including:
● Full-time workers
● Part-time workers
● Casuals who have served 12 months or more
● Category 444 visa holders from New Zealand
If you were laid off, call your employer to discuss whether they are applying for the subsidies. They will still be eligible to re-employ you and get the subsidy if you were on the books on March 1.
If you get a JobKeeper subsidy, you will not get a Jobseeker welfare payment.
HOW WILL IT WORK?
● Businesses can pass the subsidies to employees from now.
● Companies will be reimbursed by the Australian Taxation Office from the first week of May.
● The ATO will hand out the subsidies through monthly arrears.
● Employers can apply for JobKeeper subsidies online now at https://www.ato.gov.au/general/gen/JobKeeper-payment/
● The ATO will also ensure the subsidies get to workers, and they are not abused by employers.
