The Australian Government this week announced a $130 billion wage subsidy for businesses impacted by COVID-19.
We expect this to be a gamechanger for many businesses.
The JobKeeper program is designed to help business cover the costs of their employees’ wages and ensure more people retain their jobs and continue to earn an income. The idea is that by supporting businesses through this period they will be quicker to recover and get back to normal once the health crisis passes.
The government will pay employers a wage subsidy at a flat rate of $1,500 per employee, per fortnight for up to six months, backdated to 30 March.
It is payable per eligible employee as at 30/03/20 who continue to be engaged by their business, including full-time, part-time and casual employees with regular service in the last year. Anyone stood down can also be re-engaged and receive the wage subsidy.
Self-employed business owners will be eligible to receive payment where they’ve suffered, or expect to suffer, a 30% decline in turnover.
Payments will be made to businesses by the ATO, monthly in arrears. First payments will be received in the first week of May.
Further information can be obtained from the Treasury Dep’t website