The Government is introducing a subsidy program to support employees and businesses. The JobKeeper Payment is designed to help businesses affected by the Coronavirus to cover the costs of their employees’ wages, so that more employees can retain their job and continue to earn an income.
Keeping Australians in work and businesses in business will lay the foundations for a stronger economic recovery once the Coronavirus crisis passes.
The Government’s plan to subsidise wages during the coronavirus crisis, received a massive boost on Monday with the announcement of the Government’s Jobkeeper scheme. Like everything, there is legislation to pass however Labor have already confirmed they will back the overall package.
In relation to the new Jobkeeper payment we have summarised in point form below what we feel is important regarding the scheme, the measures, the eligibility and the action that needs to be taken to receive the payment.
- The Australian Tax Office (ATO) will administer the so-called “JobKeeper” scheme and has begun taking expression of interests from employers through its website.
- The initial expression of interest form asks for the business name, ABN, and contact details. Later, there will then be an online application form to complete and businesses have been urged to apply online, rather than calling the ATO.
- Register your interest here: https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper
- The wage subsidy is available to businesses with annual turnover of less than $1 billion, that have seen a 30% drop in turnover due to the coronavirus.
- The subsidy is available for employees over the age of 16 that was on a business’ books as of March 1 2020.
- Employers will have to identify eligible employees and provide monthly updates to the ATO.
- Businesses will later have to provide an ABN for their business, nominate an individual’s tax file number, and provide a declaration of recent business activity.
- Payments will then be made to the businesses bank account.
- Sole traders and self-employed people can also register their interest with the ATO immediately, via the above same link.
- Sole traders will also be required to provide a monthly update, and proof of continuing eligibility for the payments.
- It’s worth noting that employers are under a legal obligation to pass the payments on to their employees. The subsidy is specifically intended to keep employees in work, not to boost the bank balances of businesses themselves, and the ATO will enforce this.
- As overseer of the program, the ATO will be required to enforce a legal obligation for employers to use the funds to pay their staff, with single touch payroll functions slated to be used to track the money.
For more information regarding the JobKeeper Payments, please refer to the below links that will direct you to the related article on our wesbite:
To access more information on the ATO packages please click on the following links: