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KDA NEWS UPDATE - JobKeeper Payments

KDA NEWS UPDATE - JobKeeper Payments

On 30th March 2020, the Australian Government announced a wage subsidy for Australian businesses (JobKeeper Payment) in response to the Coronavirus (COVID-19) pandemic.

In addition to the measures mentioned in the previous stimulus packages.

  1. Government Stimulus Package 1
  2. Government Stimulus Package 2

We have summarised the JobKeeper Payment below. For more information, visit the government website.

For any questions relating to how this affects your business, we encourage you to contact KDA via phone (08 9248 9991) or email admin@kdaaccountants.com.au.

1. JobKeeper Payments (Wage Subsidy)

Who is eligible?

  • Businesses that have had their turnover reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month).
  • Payments will only be eligible for employees that were employed by the business prior to 1 March 2020. The ATO will use Single Touch Payroll Data to pre-populate employee details for the business.
  • Employees 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) and are at least 16 years of age.
  • Employee is an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.
  • Employee is not in receipt of a JobKeeper Payment from another employer

What is the benefit?

Employers will be paid a JobKeeper Payment equal to $1,500 a fortnight for each eligible employee. This payment is a wage subsidy to assist businesses keeping their employees employed.

How will it work?

  • If an employee is paid $1,500 or more per fortnight before tax, the employer will continue to pay the same amount. The $1,500 JobKeeper Payments will subsidise part of your employees income.
  • If an employee is paid less than $1,500 per fortnight before tax, the employer must top up the difference to a minimum $1,500. An employer should continue to pay as per normal pay run and provide the top up payment when they receive the JobKeeper Payment.
  • If an employee has been stood down, the employer must pay, at a minimum, $1,500 per fortnight.

You will be required to notify your eligible employees that you are claiming the JobKeeper payment on their behalf. You will also be required to provide a monthly update to the ATO to remain eligible for the payments. 

When does this apply?

You can start applying for the JobKeeper Payment from the 30 March 2020. If your business is eligible you will receive the first payment on the 1st week of May 2020 and can last up to a maximum period of 6 months.

How to apply?

In order to apply the ATO have released a "Register Your Interest" form that businesses will need to apply to. After registering your interest,  the ATO will provide further details at a later date.

Register Your Interest

For any questions or for more information about the economy and government stimulus packages, email us at admin@kdaaccountants.com.au.