Overnight, the Australian Federal Government has announced their 3rd stimulus package equalling approximately $130 billion.
As COVID-19 continues to cause an extended lockdown across Australia, the Federal Government is trying to soften the blow felt by businesses. The Government knows very well that ‘normality’ is on the other side once we regain control over the spread of the virus and spaces can once again begin filling with eager humans ready to spend money.
At the end of this, if there are barely any businesses paying a small portion of Australia a salary, it is going to be extremely difficult to get the Australian economy moving again.
Am I eligible?
The 3rd stimulus package aims to support businesses by subsidizing the wages of their employees. Its important to know if you are eligible. As per the Fact Sheet, you may be eligible:
- If your business turns over less than $1 billion in revenue and,
- Your revenue has seen a reduction of 30% of more relative to a comparable period a year ago
You must elect to participate in this scheme, it is not automatically offered to all businesses. Each application must be submitted to the Australian Taxation Office (ATO) and supporting documentation must be presented to show the downturn in your business since COVID-19.
Businesses that are eligible to participate must also report the number of eligible employees employed by the business on a monthly basis.
Eligible employers will receive $1,500 per fortnight before tax and can top-up the payment. If the employee:
- Earns more than $1,500 per fortnight (before tax), they will continue to receive their regular fortnight income according to their prevailing workplace arrangements. The $1,500 from the government is to assist the employer in maintaining the normal salary.
- Earns less than $1,500 per fortnight (before tax), the employer is required to pay the full $1,500 to the employee.
- Has been stood down, the employer must pay the full $1,500 to employee, before tax.
- Was employed after 1 march 2020, unfortunately sacked due to the current economic situation, and then re-hired due to this stimulus package, the employee must receive the full $1,500, before tax.
The subsidized payments will commence from the 30th of March 2020.
How do I access this stimulus package?
To register your interest to participate in this scheme, head to https://www.ato.gov.au/general/gen/JobKeeper-payment/
If you are unsure what you should do, it is important to speak with your accountant. They can provide you with the right information regarding what part of the stimulus package you should participate it, if required.
Don't have an accountant? Speak with one of our partners!
3rd? What happened to the first 2?
If you have been busy working in your business and haven't had a chance to stick your head up and missed out on the information of the first two stimulus packages, we have you.
Employer Fact Sheet : https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_1.pdf