Details of the Government’s Third Stimulus Package: The JobKeeper Payment:

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On 30 March 2020, the Federal Government announced further economic stimulus measures for businesses and employees, called the JobKeeper Payment.

The payments will assist eligible employers that have experienced a downturn due to COVID-19 to retain eligible employees by providing a subsidy of $1,500 per fortnight per employee.

Businesses are encouraged to register via the ATO website their intention to apply for this stimulus payment.  Further details on how to register can be found below.

What payments will be made: 

  • Program commences on 30 March 2020
  • First payments to be made in first week of May 2020
  • Payments to be made for up to six months
  • Flat $1,500 per eligible employee

Eligible Employers are: 

  • Annual turnover less than $1b
  • Reduction in revenue of 30% or more since 1 March 2020 relative to a comparable period a year ago (of at least a month) – we expect further announcements on how to calculate and verify this requirement in the coming days
  • Applies to companies, trusts, partnerships and sole traders

Eligible Employees are: 

  • On the employer’s books as at 1 March 2020
  • Has been retained, and continues to be engaged by that employer (including recently stood down employees)
  • At least 16 years of age
  • Full time employees
  • Part time employees
  • Casual employees who have been with the employer for at least the previous 12 months
  • Employee is only eligible to receive this payment from one employer
  • Self-employed sole traders are also eligible
  • Must be Australian residents, or
  • New Zealand residents who hold a subclass 444 special category visa, or
  • Migrants who are eligible to receive the JobSeeker Payment

Other Important Information:

  • Employers must notify employees that they are receiving the JobKeeper payment
  • The payment must be paid in full to employees (after taking out withholding tax as required), including to employees whose usual salary is less than $1,500 per fortnight
  • If the employee’s wage inclusive of tax is usually under $1,500 per fortnight, then Super Guarantee is only required on their usual salary (not on the additional top up)
  • If the employee’s wage inclusive of tax is $1,500 or above per fortnight, then Super Guarantee applies as usual
  • Employees in receipt of the JobKeeper payment will not be eligible for the JobSeeker payments
  • Businesses will be self-assessing their eligibility.  Note that the ATO will likely conduct compliance activity in the future to ensure eligibility requirements were satisfied at the time
  • Employers will be required to provide monthly information to the ATO regarding the eligible employees.  This will be pre-filled with Single Touch Payroll data.

Further updates to come: 

The JobKeeper Payment has not yet been legislated and the full details on eligibility for the payment for both employers and employees are not yet fully disclosed.

We will continue to keep you updated with future developments.

Register intention to apply for the JobKeeper Payment: 

Employers can register their intention to apply for the payment at the below website: ATO

Information required to register your interest is:

  • Business Name
  • ABN
  • Contact Name
  • Email Address
  • Mobile No.

The ATO will then continue to provide updates and request confirmation of eligibility at a later time.

Should you have any questions regarding this stimulus package, please do not hesitate to contact this office on (08) 6212 7200 to discuss.

Further updates will be provided when available.

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OUR DIRECTORS

Chris Mandzufas

Chris has a diverse range of skills and experience as a result of providing accounting, taxation, advisory board and management consulting services to owners and directors of fast growing businesses.

Chris Smith

Chris Smith has been a member of the Chartered Accountants Australia & New Zealand since 2006, a member of the Tax Institute of Australia since 2013, and a registered Tax Agent since 2018.

Tony Monisse

Tony’s key focus is the integration of strategy and financial management. To this end he has developed tools and process that facilitate this integration, including business modelling, target setting and rolling cash flow forecasts.

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