JobKeeper Allowance: New Government Financial Measure as a response to COVID-19

Government-financial-measures-on-COVID-19-Job-Keeper-Allowance

On 30 March 2020, the Federal Government met to announce its next tranche of financial stimulus in response to the Coronavirus pandemic. The key topic being the announcement of the JobKeeper Allowance. The JobKeeper Allowance has been developed by the Federal Government to help Australian businesses keep their employees in their jobs, working.

Under the scheme, eligible employees will receive Government support through their employers of $1,500 per fortnight. This is a flat payment scheme and is not means-tested against the employee’s regular wage.

Whilst we detail what we know so far, as more information becomes available on this scheme, we will continue to keep you updated.


JobKeeper Allowance – current update

To receive the JobKeeper Payment, employers must Register an intention to apply on the ATO website and assess that they have or will experience a turnover decline of 30% comparable to period a year ago (of at least one month).

Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees.

Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. This payment will subsidise the normal wages paid by the employer. However, if the employee earns less than $1,500 per fortnight the employer must pay the employee the full $1,500 per fortnight.

Eligible employees are employees who are:

  • currently employed by the eligible employer (including those stood down or re-hired);
  • were employed by the employer at 1 March 2020;
  • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020).

As more information becomes available we will continue to keep you updated on this matter. Azure Group are actively monitoring all Stimulus and Financial assistance packages being released and are holding a technical brief internally at 4.30pm each day so that are team are always well informed to offer advice and support for businesses.

Related articles:
COVID-19: How to motivate your team while working remotely?, published May 18, 2020
Expanding globally during COVID-19: Risky business or perfect timing?, published May 07, 2020
Cashflow is a lifeblood of your Business, especially now during a pandemic such as Coronavirus, published April 22, 2020
Finding opportunities in a crisis and how to recover on the other side of COVID-19?,
 published April 20, 2020
COVID-19: What does 'Standing Down my team' mean to my Business?, published April 16, 2020
JobKeeper Payment: Eligibility Rules have been released! Who is Eligible?, published April 15, 2020
Working from home during Coronavirus: What expenses are Tax Deductible?, published April 9, 2020
COVID-19: EMDG extra funding of $49.8 million to help Exporters, published April 7, 2020
Startups and Scaleups: R&D Tax Incentive FY2019 deadline extended due to Coronavirus, published April 6, 2020
What is the difference between JobSeeker and JobKeeper? Do you know what you're eligible for?, published April 2, 2020
Should you do Business Planning during CoVID-19?, published 27 Mar, 2020
A second CoVID-19 Stimulus for Businesses, published Mar 24, 2020
Financial relief for business experiencing difficulty due to CoVID-19 and State Government Support, published Mar 21, 2020
What are the benefits of Coronavirus Stimulus Package for businesses?published Mar 13, 2020

Have you noticed our #FridayExpertTips... here's one that relates to #CoVID-19: Cashflow Forecasting

There is no denying that COVID-19 will have short and long-term effects on the economy and your business. It’s imperative by now that you have a long view cashflow forecast in place that deals with both good and worst case scenarios so you are ready to react swiftly. Speak to us today if you need help."

 


Disclaimer
This information is accurate on the day it’s published and is subject to change as the situation around Coronavirus (COVID-19) evolves. Our conclusions may not be valid if there is any change in those facts, circumstances and assumptions.  Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused.

Should you do Business Planning during CoVID-19?
What is the difference between JobSeeker and JobKeeper? Do you know what you're eligible for?

About Author

Azure Group
Azure Group

Azure Group is the leading Chartered Accounting, Business Advisory and Strategic Advisory firm supporting the growth & success of fast growing entrepreneurial businesses.

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