The Australian government will provide a wage subsidy to around six million workers who will receive a flat payment of $1,500 per fortnight through their employer, before tax.
The $130 billion JobKeeper payment will be open to eligible businesses that receive a significant financial hit caused by the coronavirus. The payment will provide the equivalent of around 70% of the national median wage.
For workers in the accommodation, hospitality and retail sectors it will equate to a full median replacement wage.
The payment will ensure eligible employers and employees stay connected while some businesses move into hibernation.
Prime minister Scott Morrison says the JobKeeper payment will bring the government’s total economic support for the economy to $320 billion or 16.4% of GDP.
“This is about keeping the connection between the employer and the employee and keeping people in their jobs even though the business they work for may go into hibernation and close down for six months,” says Morrison.
The JobKeeper payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.
Where a business has stood down employees since 1 March, the payment will help them maintain connection with their employees.
Employers will receive a payment of $1,500 per fortnight per eligible employee. Every eligible employee must receive at least $1,500 per fortnight from this business, before tax.
The program commenced March 30, 2020, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the Australian Taxation Office. Eligible businesses can begin distributing the JobKeeper payment immediately and will be reimbursed from the first week of May.
The Government will provide updates on further business cashflow support in coming days.
Eligible employers will be those with annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30% or more, since 1 March 2020 over a minimum one-month period.
Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50% or more to be eligible.
Businesses subject to the Major Bank Levy will not be eligible.
Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible.
Full time and part time employees, including stood down employees, would be eligible to receive the JobKeeper Payment. Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the payment. An employee will only be eligible to receive this payment from one employer.
Eligible employees include Australian residents, New Zealand citizens in Australia who hold a subclass 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other).
Self-employed individuals are also eligible to receive the JobKeeper Payment.
Eligible businesses can apply for the payment online and are able to register their interest via ato.gov.au
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