Yesterday, the Prime Minister announced a third-stage $130 billion economic stimulus over the next six months in a bid to provide an additional lifeline to businesses and employees materially affected by the coronavirus pandemic.
Up to 6 million workers could be eligible for a job seeker wage subsidy of $1,500 per fortnight, which the Australian Tax Office will pay directly to eligible businesses that have suffered sharp drops in turnover.
Businesses will be required to pay at least that amount to workers, including those who have been stood down since 1 March 2020.
Affected businesses are those that suffer a drop in turnover of at least 30% - or at least 50% in the case of large employers with more than $1bn of turnover.
How will this operate in practice?
Businesses with employees - initially, employers can register their interest in applying for JobKeeper via www.ato.gov.au. 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.
Businesses without employees (including self-employed) – register your interest in applying for JobKeeper via www.ato.gov.au and you will need to provide:
- an ABN for your business
- nominate an individual to receive the payment
- provide that individual’s Tax File Number
- provide a declaration as to recent business activity.
Please see link below to a Fact Sheet prepared by the Federal Government that provides case studies that help communicate how this will work.
Our knowledgeable accounting and wealth advisors can help you navigate the evolving government assistance initiatives and guide you on how you can benefit.