The Australian Government has announced further measures to the proposed stimulus package which will subsidise wages for eligible employees. A summary of how this will be implemented is detailed below.
Employers
How much is the subsidy?
Eligible businesses will receive a subsidy from the government of $1,500 per fortnight for each eligible employee. The employer will then pay the employee a minimum of $1,500 per fortnight before tax. Any additional amount above the minimum payment is not subsidised by the Government and will continue to be paid by the employer.
Who is eligible?
Businesses with a turnover under $1 billion who have had or expect to have a reduction in turnover of more than 30% compared to a relative period a year ago. This period needs to be of at least one month.
When does it start?
The subsidy starts from 30 March 2020 with eligible employers receiving payments from 1 May 2020. These payments are in arrears so the first payment on 1 May will apply to wages paid from 30 March 2020 to 30 April 2020. Payments will then be made monthly in arrears for the next six months.
Is superannuation required to be paid?
Employees will continue to receive the full 9.5% superannuation guarantee on their ordinary wage. It is up to the employer whether superannuation is paid on any additional wage due to the JobKeeper Payment.
Who is an eligible employee?
Full time, part time and long term (12+ months) casual staff who were employed at 1 March 2020 are deemed to be eligible employees. Staff that were stood down after 1 March 2020 are also deemed to be eligible employees and can be re-engaged.
Self-Employed
Who is eligible?
Self-employed individuals are eligible to receive the JobKeeper payment if they have a decrease in revenue of 30% relative to a comparable period a year ago (of at least a month). If eligible, a sole trader will receive $1,500 per fortnight before tax. This will be paid on a monthly basis.
Businesses without employees must provide their ABN and nominate an individual to receive the payment. The individual's tax file number must also be provided.
Employees
Who is eligible?
If your employer is eligible to receive JobKeeper payments, they are required to notify you to then determine if you are an included as an eligible employee. Eligible employees must be an Australian citizen, permanent visa holder, Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.
The JobKeeper payment applies to staff working at 1 March 2020 who were full time, part time or long-term casuals (12+ months). It also applies to staff who have been stood down.
What will I receive?
Eligible employees will receive a minimum of $1,500 per fortnight. If you currently earn more than this, you will continue to do so.
If you normally receive less than $1,500 per fortnight, you will now receive a minimum of $1,500 per fortnight.
If you were stood down, you will now receive a minimum of $1,500 per fortnight.
If you were employed at 1 March 2020, ceased employment but are then re-engaged by the same employer, you receive a minimum of $1,500 per fortnight.
What if I have more than one employer?
You must notify your primary employer of your circumstances as you are only eligible to receive the payment from one employer.
Can I also receive Job Seeker payments?
No, the JobKeeper payment supersedes the Job Seeker payment. If you are an eligible employee and are currently on the Job Seeker payment you must notify Centrelink. You will then cease receiving Job Seeker payments and start receiving a JobKeeper payment.
Employers and sole traders can register their interest for the JobKeeper payment here: https://www.ato.gov.au/Job-keeper-payment/
Please note that this is currently a proposed measure and may be subject to change by the Government.
If you have any questions about how this new Government subsidy will be implement please contact our office.