Wednesday 01 April 2020

Government Initiative Update 1 April 2020

Government Initiative Update 1 April 2020 - JobKeeper Initiative

Further to our Government business stimulus update we emailed you on Monday, the Federal Government has increased their workforce incentives by announcing an additional $130 billion JobKeeper package to keep jobs in the workforce (Monday 30 March).

This stimulus will provide most eligible business the equivalent of around 70% of the national median wage. Unless you work in the accommodation, hospitality or retail sectors, this will be equal to a full industry average wage. This payment will be made for up to 6 months.

What does this mean for you?

The JobKeeper Payment is essentially a subsidy for those businesses that have been affected by the Coronavirus and are keeping on their employees. Affected Employers will be able to claim a fortnightly payment of $1,500 per eligible employee form 30 March 2020 for a maximum period of 6 months.

To be eligible

• The businesses’ employees must be employed as at 1 March 2020 (including those stood down or rehired).

• The employees must be full time, part time or long term casuals (employed on a regular basis for longer than 12 months), at least 16 years of age and are an Australian Citizen, holder of a permanent visa, a 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 and are not in receipt of JobKeeper Payment from another employer.

• The business must have a turnover of less than $1b and their turnover will be reduced by more than 30% relative to the comparable period a year ago or their business has a turnover of $1b or more and their turnover will be reduced by more than 50% relative to a comparable period a year ago and the business is not subject to the Major Bank Levy.

What to do?

To receive the JobKeeper Payment, Employers must register an intention to apply on the ATO website https://www.ato.gov.au/Job-keeper-payment/

The ATO will then contact you to ensure you qualify.

The first payment is expected to be received by Employers in the first week of May.

Businesses without Employees

Businesses without employees, such as the self-employed, can register their interest via the government website https://www.ato.gov.au/Job-keeper-payment/. You will need to:

• Provide an ABN for your business

• Nominate an individual to receive the payment

• Provide that individual’s tax file number

• Provide a declaration as to recent business activity

• You will need to provide monthly updates to the ATO to declare your continued eligibility for the payments

If you believe you may be eligible for this initiative, please register as soon as possible.

In addition, the government also has a Business Liaison Unit, where businesses can voice crucial issues that are affecting their business which have not yet been addressed.

Queensland

There are currently no new QLD only incentives since our last update.

New South Wales

In addition to the QLD state and Federal initiatives, the NSW government are deferring tax for 6 months for payrolls over $10 million. For businesses with payrolls under $10 million, they will receive an additional 3-month deferment of tax on top of the state’s first announced stimulus package.  The NSW state government has also advised they will defer tax for gaming clubs, pubs and hotels. However, these funds must be used to retain staff. Parking space levies have been deferred for 6 months.

All other states and territories stimulus packages and incentives are in-line with what is offered on the Australian Government website https://www.australia.gov.au/