As many of you would be aware, a wage subsidy payment directly from the Government to “eligible employers” (called the JobKeeper Payment) has been just been announced and legislated. The payment will be $1,500 per fortnight, for each “eligible employee” from 30 March 2020 to 27 September 2020 (a period of 26 weeks).
For a typical Small to Medium sized business to qualify, an employer must be able to show it has/will suffer a decline in its “projected turnover” (i.e. projected income/sales) by at least 30% for either a calendar month, from March 2020 to September 2020, or for the quarters ending 30 June 2020, or 30 September 2020. Applications applying to later periods will not be eligible for the JobKeeper payments in earlier periods.
As the JobKeeper payment is aimed to encourage employers to retain staff, “eligible employers” are then required to pay each eligible employee at least $1,500 per fortnight during the period.
Please also note, either: a sole trader, a partner in partnership, a shareholder/director of a company or a beneficiary of a trust can also receive the JobKeeper payment, if they are ‘actively engaged’ in the business, but not officially employed as an employee (in certain circumstances). However, only one individual is permissible, per entity application.
For more specific and detailed information surrounding the JobKeeper payment, please click on the below link, that we can share with you, as a subscribing member of the NTAA:
NTAA Paper: JKP 15.04.20
If you believe your business will qualify for the JobKeeper payment, details of how to enrol and apply are contained in the link below:
You can enrol anytime from Monday 20th April through to Sunday 26th April, for the month of April. Due to this very short enrolment period, we strongly urge you to enrol as early as possible.
Before enrolling, you will need to ensure you have registered for your myGovID, linked it to your business and have access to the Business Portal, for the applying entity. In our experience, registering your myGovID can be a tricky process, so we suggest setting this up as soon as possible.
If you are not sure whether your business can qualify for the JobKeeper payment and you would like to discuss further, or if you have any other questions relating to this, please do not hesitate to contact our office on 07 5532 4555.
The Lutz Team