you may be aware of yesterday's announcement from the Federal Government in relation to the new "Jobkeeper" payment, that is designed to enable employers to keep their staff "on the books" even as they experience a downturn in revenue due to Covid-19.
The main points are:
- employers must have a reduction of revenue of at least 30% due to Covid-19 (must be able to proof)
- eligible employees are those who were employed as at 1 March 2020, either full time, part time or if casual and had an employment relationship of at least 12 months
- employers will receive $1,500 per fortnight per eligible employee regardless of the employees actual income
- employers will be required by law to pay those amounts in full to employees
- employers may top up the payment if they wish or are able to
- payments are due to commence from 1st week of May
- the system will be administered by the ATO
Initially employers can register their interest for this scheme at the ATO website https://www.ato.gov.au/general/gen/JobKeeper-payment/
Subsequently employers will need to apply for Jobkeeper payments and must provide monthly updates to the ATO.
Participating employers will need to identify eligible employees for Jobkeeper payments
Sole traders or Individuals operating a small company with no employees:
You can also register your interest for the scheme at the above website.
The process will then be that you need to provide the business ABN as well as nominate an individual to receive the payments
"Mum & Dad" company or trust:
It is still unclear as to whether 2 or more individuals can be nominated under the "Sole Trader" process - we will update you on this as soon as we get more clarification on this.
Please contact me with any specific questions and/or how this will apply to you/your business personally. (rather than replying to this email, please write a new email so I can separate all the email threads, thank you)
Our office is open and for now it is business as usual, so we are here to help.
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Clients should not act solely on the basis of the material contained on this website and the above social media pages. Items herein are general comments only and do not constitute or convey advice per se.
Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas.
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