Yesterday Prime Minister Scott Morrison announced that the Federal Government will release $130 million with the single objective of keeping Australians in jobs to offset the impact of COVID-19. In short, it is a payment of $1500 per employee per fortnight (before tax) as a wage subsidy paid to employers. Employers who apply for the payments will have a legal obligation to ensure the full amount is passed on to eligible employees.
So, what does this mean to you and your business and how do you access this support?
Click here for information WHO
The eligibility criteria is as follows:
Effective immediately with payments from the Australian Tax Office directly to the employers to commence in the first week of May, backdated where applicable to 1 March, 2020. The payments will cover a six month period.
COVID-19 has caused changes to occur at breakneck speed so there will be many employers facing differing circumstances for differing categories of , so an overview of how this subsidy may work is as follows:
Superannuation must continue to be paid on regular wage amounts. But it is up to you to decide if you are willing to pay super on any additional JobKeeper payments. For example: Jerry is normally paid $1,000 a fortnight plus superannuation. With the JobKeeper subsidy, you will pay him the $1,500, with superannuation paid on the first $1,000. From there it will be up to you to determine whether or not you will pay superannuation on the additional $500.
The aim of the JobKeeper package is to keep employees in jobs and keep employees and employers connected. If your business is in an industry that is being impacted by the COVID-19 – but not directed to shutdown yet – this payment will allow you to keep your team working and preparing for when we come through to the other side of this insidious virus. For those who have been directed to close, this payment will mean you can keep your team employed and linked to you so keep communicating with them. This is a time for analysing and planning and getting ready to reopen as soon as you are allowed.
Please remember that you must continue to accrue leave entitlements for all employees who have been stood.
Additional information regarding JobKeeper Payments is available from the Australian Government Treasury.
Click here for information for employers and click here for information for employees.
Contact the HR Staff n’ Stuff team for guidance on how best to structure your team and how the JobKeeper Payment can support your payroll burden and keep your team employed. We will continue to support you through this challenging time.
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