The Australian Government has announced unprecedented assistance to help businesses of all sizes manage their cashflow and retain their employees.
The six-month JobKeeper Payment of $1,500 a fortnight per employee is made through the tax system and is available to small, medium and large businesses, and not-for-profits. Legally employers must pass on the payment to employees who are earning less than $1500 per fortnight.
To be eligible, a small or medium-sized business with an annual turnover of less than $1 billion must have lost at least 30 per cent of its revenue since 1 March, over a minimum of a month-long period. For large businesses, the drop in revenue must be at least 50 per cent
It’s important to note you won’t receive the first JobKeeper Payment until the first week of May, but it will be backdated to 30 March 2020. Subsequent payments will be made to you monthly in arrears by the ATO.
It’s also worth noting that it will be up to the employer if they want to pay super on any additional wage paid because of the JobKeeper Payment.
Call us today if you need help managing your business cashflow or applying for government financial assistance during the current crisis.
Information in this article has been sourced from the Treasury website: https://treasury.gov.au/coronavirus/jobkeeper
As always, if you would like to discuss the contents of this newsletter please give us a call 07 5559 5760.