The Government has announced the details of two crucial packages to aid millions of Australians in financial distress.
JobKeeper payments
Earlier, the authorities declared a wage subsidy scheme to offer payments of $1500 per fortnight to millions of Australians. The businesses that are influenced by Coronavirus will be able to access the subsidy from the Government for the payment to their employees.
The employees who got affected due to pandemic will be able to claim payment of $1500 fortnightly per eligible employee, this came into effect from March 30, 2020, for a period of six months.
As the subsidy started from March 30, 2020, in the first week of May, its first payment shall be received by employees. The payment will be made to the employer by the ATO. Afterward, this will be paid to the employees with PAYG tax deducted in a normal manner.
ELIGIBILITY TO BENEFIT
You will be eligible for the subsidy if:
- You are a minimum of 16 years of age.
- You are presently employed by an employer who is eligible
- You were employed on March 1, 2020.
- You are part-time, full-time, or long-term casual which means a worker employed on a regular basis for more than a period of one year as of March 1, 2020. The casuals who are employed for less than 12 months are not included currently.
- You are holding citizenship of Australia, permanent visa, Special Category Visa, Non-Protected Special Category Visa, or you are a person who has been residing in Australia for a minimum of 10 years in continuation. The citizens of New Zealand will qualify for this subsidy; however, other temporary Visa holders are not included currently.
- You are not in the books of getting JobKeeper Payment from any other employee. You are liable to receive payment from one employee only, therefore if you are doing a number of jobs then you must nominate one employer to get the JobKeeper payment.
ELIGIBLE EMPLOYERS
The employers will be eligible to get the subsidy if:
- their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month)
- their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month)
- the business is not subject to the Major Bank Levy (so, employees of the big banks are not eligible).
The qualifying businesses should register their intent to apply on the website of ATO and evaluate that they will experience the mandatory turnover decline. They are also required to provide information to the ATO about their eligible employees, that will also include the number of eligible employees as at March 1, 2020
WHAT I WILL BE GETTING?
The eligible recipients can get the payment in the following manner:
- If you receive ordinarily $1,500 or more than this every fortnight before taxes, you will be receiving your regular income. Either all of your income or its subsidized parts will be received in JobKeeper Payment.
- If before tax, you receive less than $1500 per fortnight; your employer is liable to pay you at least $1500. Therefore, it means that your income will rise to $1500 each fortnight.
- Your employer is liable to pay you, at a minimum, $1,500 per fortnight, before tax, if you have been stood down.
On the basis of your regular wages, your employer must not cease to pay you superannuation guarantee; however, it depends on your employer whether they pay superannuation on additional JobKeeper Payments.
It will be notified to you by your employer that you are eligible for JobKeeper Payment.
PACKAGES FOR CHILDCARE
This package aims:
- To provide child care benefits to almost 1 million families.
- Assure that early learning and childcare centers stay open during Coronavirus to offer assistance to families that requires work.
From 6th April 2020 weekly payments have been started to be paid to early childhood education and care service providers. Until the end of Financial Year 2019-2020, these payments will be made, also families will not be charged during this time.
Child care services and Early childhood education do not require to be applied for payments, they will be automatically paid.