JobKeeper Payment Information – COVID-19 Update
The Government of Australia has declared their objective to pass legislation to introduce the measure to provide wage subsidies to the businesses which are affected by Coronavirus. Under this legislation, the assistance will be directed to the employers to pass on to the workers. The Prime Minister of Australia unveiled $130 billion support package to help businesses and the workers.
JobKeeper Payment to Coronavirus Affected Employers and Employees
The coronavirus has economic impacts due to which many of the businesses are suffering, like struggle to retain the employees. This assistance provided by Government will help businesses. To maintain the workers to their jobs and re-start with their work when the crisis will get over. Even if the working hours of employees have been reduced, the employees can maintain their job and can earn income.
To get jobkeeper payment, the businesses which are got influenced by coronavirus will be accessing the subsidy from the authorities to continue the pay to their workers. The employers who are affected by the pandemic will be able to claim payment of $1,500 per employee, who will be eligible for a period of 6 months from 30 March, 2020.
This is a temporary scheme that is open to the businesses impacted by corona virus. This scheme shall also be liable to self-employed employees. This scheme will support employers to maintain the connection with their workers. Due to these connections, businesses will be able to reactivate the operations instantly. Therefore, they will not have to rehire their staff, when the crisis will be over. By keeping Australians in work and in businesses shall lay the foundation for strong recovery of economy, when the crisis will pass away.
Coronavirus Supplement Payment
The employees or employers who are eligible for JobKeeker Payment, will also be eligible for Coronavirus supplement Payment. This is an additional support of payment of $550 per fortnight starting from April 27, 2020. Therefore, it can be concluded that a couple can receive $1100 per fortnight. Over a time span of six months, this would be equal to $14 K.
Who are Eligible for the government’s new JobKeeper Payments?
The eligibility of Employers to get the subsidy is as follows:-
- If their business is having a turnover of less than $1 billion and the turnover has falls by more than 30 percent.
- If their business is having a turnover of $1 billion or more than that and their turnover falls by more than 50 per cent .
- if the business is not subject to the Big Bank Levy.
Another specification to have eligibility for an employer to get JobKeeper Payment is that the business owner must have been in relation of employment with eligible employees as on March 1, 2020 and this must be assured that eligible employee is currently engaged to receive the JobKeeper Payments. Non-lucrative bodies and individuals who are self-employed and who meet the tests of turnover that are applied to businesses stand eligible for application of JobKeeper Payments. Here is an overview on how you can prepare your business for COVID-19 Impact.
The eligible employees to get benefitted from the subsidy are those:-
- Who are currently employed by the eligible employer this include those employees who stood down or are re-hired.
- Who were employed by the employer at 1 March 2020.
- Who are full-time, part-time, or long-term casuals.
- Who are of minimum of 16 years of age.
- Who are Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder.
- You should not in receipt of a JobKeeper Payment from another employer. If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.
The eligible employee do not need to apply anywhere, you should only talk to your employer, they will automatically put the payment into your account.
On regular wages, the employer should continue the payment of superannuation guarantee, however, it depends upon employer that whether they pay superannuation on additional job keeper payments.
To exemplify, an employee who was receiving $1000 a fortnight and superannuation extra, will receive $1500 JobKeeper Payment with superannuation paid on first $1000 and the employer will decide on whether to pay it on last $500.