Third Tranche Economic Stimulus Package
On 30 March 2020, the Prime Minister and Treasurer announced a six month JobKeeper subsidy package to assist businesses to keep their workers employed. The package will operate as a wage subsidy of $1,500 per fortnight to be paid by the ATO directly to employers for each eligible employee who was employed on 1 March 2020.
The wage subsidy is anticipated to assist around 6 million workers and brings the Government’s total COVID-19 economic stimulus package to $320 billion.
These measures, although still to be passed through parliament, are due to commence immediately and apply to employees registered with their employer from 1 March 2020.
Payments will be made monthly in arrears with the first payment being made on 1st May for the month of April.
- Businesses with turnover of less than $1 billion whose turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month) due to coronavirus are eligible to register with the ATO for the JobKeeper subsidy.
- Businesses with turnover of $1 billion or more whose turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month) are also eligible to register for JobKeeper
- Self-employed individuals & Sole Traders without employees who satisfy the above turnover tests are eligible to apply for JobKeeper payments.
Not-for-Profit organisations (including charities) also qualify. However, financial institutions that are subject to the Major Bank Levy will not be eligible.
The turnover decline will require that turnover of a current period be compared with a comparable period of a year earlier (of at least one-month duration).
It’s important to ensure satisfactory workpapers are on file to ensure evidence of the decline in turnover.
For most employers, Single Touch Payroll data will enable the ATO to pre-populate employee details. We’re currently working through the detail of these processes and will get some information regarding this out to our Business clients very soon.
Businesses can register their interest online now.
- Full-time and part-time employees are all eligible for this payment, subject to them being at least 16 years of age.
- It will also cover casual employees who have been with their employer for at least the previous 12 months.
- It will also be available New Zealanders in Australia on 444 Visas.
- The JobKeeper payment also applies to employees that have already been stood down. If employees have already been retrenched however, they would need to be reinstated to qualify for the benefit, otherwise they can apply for the JobSeeker allowance.
An employee will only be eligible to receive the JobKeeper payment from one employer.
Payments will cover a six-month period from 30 March 2020, with the first payments to be made in May and backdated.
OTHER FEDERAL INITIATIVES
The Government also announced an increase to the Centrelink Partner Income Test to $79,000 (from $48,000).
WHAT DO I DO NEXT ?
Eligible businesses can apply to the ATO and you will need to provide a monthly update, including the number of eligible employees employed by the business.
We can help!
For our existing Business clients, if you require more information or would like some support accessing any of the support measures announced, please don’t hesitate to get in touch.
NOT AN EXISTING CLIENT?
Lets get you on board and help you maximise eligible stimulus assistance and become part of the BPI team.
FREE BCP TEMPLATE
We’ve also developed a Business Continuity Plan Template to help businesses manage potential risks and ensure you are taking full advantage of eligible stimulus assistance.
Keep up to date with our articles and updates on our news page on our website.
Stay safe everyone.
The team at BPI