The Government has come to realise the enormous impact the COVID-19 suppression strategies have had on doing business in Australia. We have been working with many of our business clients to develop cash preservation strategies and provide as much assistance as we can in managing your way through.
The latest announcement of a Jobkeeper Payment subsidy to support employees and businesses is very promising and will provide actual cash flow relief for those businesses who pay employees.
Under the Jobkeeper Payment, the Government will provide $1,500 per employee per fortnight for up to 6 months. To qualify, your business must have suffered a 30 per cent fall in revenue compared to a year ago. Employers need to elect to participate in the scheme and make an application to the Australian Taxation Office and supply supporting information to demonstrate the downturn in your business. Munro’s will be able to assist and we ask you do get in contact with us so we can get the process started. In particular, we need to consider with you how the 30 per cent fall is to be measured.
Eligible employers will receive the payment for each eligible employee who was on the books at 1 March and who continues to be employed, with the subsidy commencing on 30 March and first payments to be made in the first week of May 2020. Payments will continue thereafter monthly in arrears for up to 6 months. If your employee is getting less than $1,500 per fortnight, then you would need to pass on the full $1,500 (before tax) to them and if they are paid more, you will receive the $1,500. Employees need to be Australian citizens or certain visa holders to qualify – please ask us for further information if you have non citizen employees.
Self employed individuals will also qualify for the $1,500 subsidy if they have suffered a 30% decline in turnover.
Once the legislation is drawn up and passed by Parliament, we will be in a better positon to confirm eligibility criteria and quantify amounts to be received. In the meantime, please do get in touch with us if you need any help or advice, we want to assist wherever we can.
Keep safe and talk soon, via phone, zoom or skype.