Government announces JobKeeper wage subsidy package

Prime Minister Scott Morrison has announced a $130 billion economic stimulus package that includes a JobKeeper wage subsidy of $1500 per fortnight per employee.  The Government will require employers to pass on the payment to affected workers.  The Prime Minister said the Government expects up to 6 million workers to receive the payment over the next 6 months:

Our plan will see our businesses large and small, right across our entire economy share the load with our welfare system, deliver these important income support. Our JobKeeper plan sees every Australian worker the same way, no matter what you earn. There is not more support for some than there is for others. That is not the Australian way. If one person falls on a hard time, if anyone falls on a hard time, it’s the same hard time. We’re all in this together. That’s what’s fair. That’s what’s Australian.

Treasurer Josh Frydenberg said the Government was providing support to the Australian worker like never before, “Extraordinary times call for extraordinary measures.”

Employers will be eligible for the subsidy if:

• their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or

• their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and

• the business is not subject to the Major Bank Levy.

The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.

Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.

Initially, employers can register their interest in applying for the JobKeeper Payment via ato.gov.au from 30 March 2020.

Subsequently, eligible employers will be able to apply for the scheme by means of an online application. The first payment will be received by employers from the ATO in the first week of May.

Eligible employers will need to identify eligible employees for JobKeeper Payments and must provide monthly updates to the ATO.

Participating employers will be required to ensure eligible employees will receive, at a minimum, $1,500 per fortnight, before tax.

It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.

Further details for businesses for employees will be provided on ato.gov.au.