Eve Kent gives another update, discussing the new Federal Government stimulus for job keeper payments. Click on the link below to hear the podcast.
Eve Kent discusses stimulus packages HERE. In writing below.
Government Stimulus Update – Job Keeper Payments
Hi everyone. This is Eve from Farmanco Bookkeeping giving an update on the third stimulus package that has been rolled out.
Prime Minister, Scott Morrison, has announced a further economic lifeline with the goal being to protect the lives and livelihoods of Australian workers.
To date, the government has put together close to $70 billion in the previous two packages and now on top of this today (Monday 30th March 2020) the federal government has launched a third stimulus package, which they’ve called The Job Keeper Payment.
This package totals $130 billion and will be paid out over the coming six months to support the jobs and livelihoods of close to six million working Australians.
The Treasurer, Josh Frydenburg, went through details of the Job Keeper Payment package today. There’ll be over $1500 per fortnight, per employee, paid to employers under the Job Keeper Payment arrangement. And the idea behind this support is to keep people in their jobs and remain connected to their employers, even if work has dried up for now.
This $1500 per fortnight, per employee payment will benefit sectors that have been most heavily affected by the Corona Virus outbreak which includes retail, hospitality, travel and tourism. However, the package is not only available to those business industries. It is also being rolled out to include sole traders, charities, not for profit organisations and all businesses in Australia that have been affected.
A casual staff member as well as a full-time and part-time staff member is entitled to be covered under this $1500 per fortnight payment. The casual staff member will have needed to have been with their employer for 12 months or more and then they’ll be entitled to receive this payment via their employer.
Your employee has to have been on the books on the 1st March 2020 and if they’ve been stood down since that date now is the opportunity for employers to re-engage that employee’s position in the hope that once the Corona Virus passes business can go back to normal with these staff still employed in their jobs, within the business they were working.
The package also applies to employees working on New Zealand’s 444 visas, but currently does not include other working holidaymaker visas. Now this may change as the legislation hasn’t been drafted yet. We’ll keep you updated if we hear of it including any other working holidaymaker visas.
It is worth noting that employees can’t claim the Job Seeker payment that was rolled out last week as well as the employer registering for the Job Keeper funding.
Employees need to ring their employer, find out if they’re registering for Job Keeper and what this means for their position.
The roll out of payments will be made to employers from May this year and backdated to today, 30th March 2020.
To be eligible for this payment, the business or sole trader must demonstrate that the business turnover has fallen by 30% or more.
For larger businesses with a turnover higher than $1 billion, they need to demonstrate that their business has fallen by 50% or more to be entitled to the Job Keeper payment.
Scott Morrison also noted that the legislation has not been drafted yet and it will take at least a week to draft, so for now the next step is that employer’s can register for Job Keeper payment on the ATO website. Speak to their workers who are still on-staff and let them know they’ve registered. And those who’ve already been stood down from their position since 1st March 2020, the employer should call them to work out how to continue their employment going forward.
Employers don’t need to call the ATO to register, just go to www.ato.gov.au click on the Job Keeper payment link and click on Register for Job Keeper updates and enter your company information on the form.
If you’d like any assistance registering for these updates, please contact our office on (08) 9295 0940 or email email@example.com and we’d be happy to help you.
We’ll keep you updated further as the legislation is passed, but for now, stay safe, look after yourselves, look after your staff and look after your families.