COVID-19: ‘JobKeeper’ support payment
On 30 March 2020 the Federal Government announced further COVID-19 business support in the form of the JobKeeper Payment, which is intended to keep individuals connected with their employer and talks to the ‘hibernation’ of businesses already mentioned by the Prime Minister.
Under the JobKeeper Payment, businesses significantly affected by Coronavirus outbreak will be able to access a $1,500 support payment per employee per fortnight for up to 6 months from the Government to continue paying their employees.
Eligible employers will be those:
with annual turnover of less than $1 billion who self-assess to have a reduction in turnover of 30% or more, since 1 March 2020 over a minimum one-month period; or
with an annual turnover of $1 billion or more who will be required to demonstrate a reduction in turnover of 50% or more.
Businesses subject to the Major Bank Levy will not be eligible.
Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible.
Employers must elect to take part in the scheme by making an application to the Australian Taxation Office including supporting information showing a downturn in their business.
Key issues will be how turnover is calculated and the necessary data required for businesses to self-assess. Stay tuned for a more detailed article following the introduction of draft legislation. Treasury fact sheets on the JobKeeper Payment are available here.
For more information please contact:
Paul Gray
Principal
T: 03 5225 5231
E: pgray@ha.legal
Alexander Gulli
Lawyer
T: 03 5226 8573
E: agulli@ha.legal
