The proposed JobKeeper package announced by the Federal Government is a wage subsidy scheme. Legislation which will contain the detail of the scheme is to follow. So far, the main points for employers to be aware are as follows.
Eligible employers impacted by the economic downturn as a result of the current pandemic will be able to access a wage subsidy made available to them by the Federal Government for the purpose of continuing to employ and pay their workers.
A flat fortnightly before tax subsidy of $1,500 from 30 March 2020 for a maximum period of 6 months is proposed under the scheme.
The subsidy may be available and payable only to employers for it to be re-paid to their workers in the form of ordinary wages to defray the cost of their labour force.
Payments to eligible employers are to be made monthly in arrears by the Australian Taxation Office from April.
Employers eligible to pay the subsidy to workers eligible to receive the subsidy must establish the following:
The wage subsidy must be in relation to a worker who has been in an employment relationship with an Eligible Employer from 1 March 2020 who must also satisfy the following criteria:
The methodology behind the announcement indicates that the wage subsidy can be treated in the following ways:
Persons self-employed may also be able to claim the fortnightly payment in circumstances where they satisfy the criteria of what it means to be an Eligible Employer.
If you have any questions about the wage subsidy or require assistance registering your interest for the wage subsidy please do not hesitate to contact us.
Ben Duggan
Director
p. +61 8 8124 1881
e. Email me
Jonathan Ikonomopoulos
Senior Associate
p. +61 8 8124 1824
e. Email me
This communication provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Should you wish to discuss any matter raised in this alert, or what it means for you, your business or your clients' businesses, please feel free to contact us.