Government stimulus package #3 - 30.03.2020

It would not be a new week without a new Government stimulus to notify you all about.  With the economic climate rapidly changing, the Government is doing everything in their power to reduce the impact that the coronavirus is having on the Australian economy.  These measures are in addition to the previous stimulus package roll-outs, which you can read about on our news page – Stimulus Package Part 1 and the Stimulus Package Part 2.

The latest stimulus package, which was announced on the afternoon of Monday the 30^th of March, is the JobKeeper package, which aims to keep individuals being paid a wage if their employer (small or large) has had a significant drop in income.  It also targets those who are self employed, which is a big bonus for a large portion of our client base.  There have also been some changes to the Centrelink based JobSeeker payments.  Whether you are a business owner, self employed or an employee of a business who has fallen on hard times, this information is important for you.

General Information –

• Each eligible business will have to register an intention to claim the JobKeeper payments.  This can be done by clicking here. 
• For businesses, if you meet the criteria (below), each eligible employee receives at least $1,500 per fortnight (before tax) until business picks up, or for a maximum period of 6 months.  This is paid to the business.
• All participants of the JobKeeper payments will have to provide information to the ATO on a monthly basis.
• Eligible employers must pay the eligible employees at least the $1,500 per fortnight, even if their regular wage is less than this.
• Employees that have been stood down by their employers since the 1^st of March 2020 are still eligible for these payments.
• The JobKeeper payments will begin from the 1^st of May and will be backdated to the 30^th of March 2020.
• The self-employed are eligible for the JobKeeper payment.  We are still waiting on clarification for those that trade through companies and trusts.

Eligible Employers –

• Employers with a turnover under $1 billion who have a reduction in revenue of 30% or more, relative to a comparable period a year ago.
• Employers with a turnover over $1 billion who have a reduction in revenue of 50% or more, relative to a comparable period a year ago.
• Eligible employers include businesses structured through companies, partnerships, trusts, sole traders and not-for-profits.
• The self-employed register in the same manner, however, you will need to provide your own ABN and TFN, plus a declaration of recent activity in the registration process.  As mentioned above, we are still waiting on clarification for those that trade through companies and trusts.
• It is up to the employer if they pay super on any additional wage paid because of the JobKeeper ayment.
• For more information please click here.

Eligible Employees –

• Employed by an eligible employer or were employed at the 1^st of March 2020.
• At least 16 years of age.
• Full time, part time or long term casuals.
• Not receiving a JobKeeper Payment from another employer.
• For more information, including details on visa holders, please click here.

Changes to the Centrelink based JobSeeker payment –

• This is a payment for those who have lost their job and not entitled to the JobKeeper payment.  This payment is coordinated through Centrelink, which means that unfortunately, we cannot provide a great deal of assistance.
• The JobSeeker payment is a supplement income of $550 a fortnight, with a one-off ‘Coronavirus Supplement’ payment of $750.
• The restriction on receiving this payment have been eased, with partner income threshold being pushed out to $79,762 per year.
• For more information on this please contact Centrelink.  There is more information if you click here.

As is always the case, we will do our best to keep our client base informed with the changes as soon as we can.  You can also stay up to date by following the news page on our website, or following us on Facebook.  Please don't hesitate to contact us for further information.

Want to learn more about our team?  Be sure to view our staff profiles here!

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.