Extraordinary times call for extraordinary measures. Prime Minister Scott Morrison has announced today the $130 Billion Jobkeeper Plan – a wage subsidy to secure approximately 6 million Australian jobs and businesses by incentivising employers to stay connected with their employees rather than let them go in these uncertain times.
How much do you get and how will it work?
The $1500 per fortnight JOBKEEPER PLAN payment will be paid direct to the employer. Payments will then be passed onto the employee via standard payroll processes. This will keep them connected to the business that employs them, rather than let their good staff go when many businesses are struggling with plummeting sales, shut down industries and uncertain futures.
This then means, for businesses in industries that are under forced shutdowns, that the employees are to remain connected and working with the employer on helping them get ready for when they can reopen. it’s not a grab and run six month paid holiday.
For those who were feeling uncertain but still trading, will secure the employment and the future for staff to work with confidence and trade through the crisis.
The $1500 per fortnight payment will see every Australian worker paid the same, no matter what you earn and is based on 70% of the median wage.
Who is eligible?
The Jobkeeper Payment is available to full and part-time workers, casual workers of 1YR+ and sole traders. Also eligible for Visa 444 holders.
How do businesses apply?
Businesses will need to declare they are experiencing a downturn in revenue of more than 30%, or in the case of businesses with turnover over $1BN the threshold will be lifted to 50%.
Not for Profits are also included in these new measures.
Things brings over $200 Billion of support from the Federal Government to support business and employees throughout these crazy times.
How do employees get paid?
Employers will receive funds directly from the Federal Government and then pass the funds onto staff through their standard payroll process. This way, the process will be fast-tracked given employers have existing processes with the Government and will fast track the process rather than create something from scratch.
Employees receiving these payments will not be eligible for Superannuation on the monies contributed by the Government, however, a small price to pay in the bigger picture of regular income for them and their families.
It’s more generous and broader than other schemes overseas including support for those employees still employed not just those stood down.
Employers only need apply
From today, employers can apply to ATO for the payments which will start flowing from 1 May, with payments backdated to today, 30 March 2020.
More to come.