Good Morning,
Yesterday, the PM annouced the new Job Keeper initiative which aims to help employers support their employees by offering a flat $1500 per fortnight before tax payment.
Businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.
Employers will be eligible for the subsidy if their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month).
The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
Eligible employees are employees who are currently employed by the eligible employer (including those stood down or re-hired) and were employed by the employer at 1 March 2020.
Initially, employers can register their interest in applying for the JobKeeper Payment via ato.gov.au from 30 March 2020. You can click on the link below and fill in the details (Name, Entity name, contact details, ABN):
https://www.ato.gov.au/general/gen/JobKeeper-payment/
Subsequently, eligible employers will be able to apply for the scheme by means of an online application.
The first payment will be received by employers from the ATO in the first week of May.
Eligible employers will need to identify eligible employees for JobKeeper Payments and must provide monthly updates to the ATO.
Participating employers will be required to ensure eligible employees will receive, at a minimum, $1,500 per fortnight, before tax.
It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.
What if I am self-Employed:
Businesses without employees, such as the self-employed, can register their interest in applying for JobKeeper Payment via ato.gov.au from 30 March 2020.
Businesses without employees will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent business activity.
People who are self-employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments and payment will be made monthly to the individual’s bank account.
Actions:
I would advise you to click on the link to the ATO site and fill in the details for the registration. I did this last night and took about 30 secs. A compelling reason is that once you are approved, you should be back paid for payments from the date you register your interest.
In my next post I will go into more specifics as how this payment may apply and other considerations , such as super.
If you need any assistance with this, please let me now.
All the best and stay safe.
George
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