COVID-19: WAGE SUBSIDY ANNOUNCED
Jobseeker Fact Sheet here
• The Government has announced a $130 billion JobKeeper wage subsidy. Employers must be able to declare a 30 per cent revenue impact to access payments.
• As Business NSW has argued, the wage subsidy is essential to keeping businesses connected with their staff and to avoid large job losses.
• Eligible employers will receive a fortnightly payment of $1,500 to pay to each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer. Every eligible employee must receive at least $1,500 per fortnight, before tax.
- Workers already laid-off: If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.
- Workers paid less than $1,500: If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
- Workers paid more than $1,500: Employers must continue to pay employees according to prevailing workplace arrangements. Employees that are stood down must be paid, at minimum, $1,500 per fortnight.
- Superannuation: Superannuation must continue to be paid as normal. It will be up to the employer if they want to pay superannuation on any additional wage paid (not already covered under existing workplace arrangements) because of the JobKeeper subsidy.
• The payment will be administered through the ATO. Businesses can be advised to register their interest for JobKeeper updates on the ATO website.
• Eligible employers will be those with annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30 per cent or more, since 1 March 2020 over a minimum one-month period. Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50 per cent or more to be eligible.
• Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible.
• Full time and part time employees, including stood down employees, would be eligible to receive the JobKeeper Payment. Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the Payment. An employee will only be eligible to receive this payment from one employer.
• Eligible employees include Australian residents, New Zealand citizens in Australia who hold a subclass 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other).
• Self-employed individuals are also eligible to receive the JobKeeper Payment.
How to receive the payment?
• Eligible businesses will be able to apply for the payment online and can register their interest for JobKeeper updates on the ATO website.
• The program will commence today, 30 March 2020, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the ATO. Eligible businesses can begin distributing the JobKeeper payment immediately and will be reimbursed from the first week of May.
Jobseeker Fact Sheet here
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For further questions or comments, please email Business NSW's Chief Economist, Mark Frost here, or contact him via LinkedIn