On Monday, the Federal Government announced its latest stimulus package: The JobKeeper payment.
The JobKeeper payment will help businesses who have been hit hard by the coronavirus to retain their employees without further financial hardship, leaving them better placed to restart when the crisis is over.
Here are the key points you need to know as a business owner.
- The government will pay employers who have lost 30% or more business due to the pandemic $1500 a fortnight per employee, which will then be paid to those employees.
- Eligible employers are businesses (including companies, partnerships, trusts and sole traders), not-for-profits and charities with a turnover of less than $1bn that have lost 30% or more of their revenue compared to a comparable period a year ago, and with a turnover of $1bn or more and with at least a 50% reduction in revenue compared to a comparable period a year ago.
- Employees whose jobs are under threat will welcome the economic relief, and employees who have recently been made redundant since the crisis took hold, may be able to retain their jobs thanks to the payment.
- This payment isn’t intended to save every single employee made redundant by the financial crisis, as many businesses can’t afford to scale down regardless. The Jobkeeper payment will only soften the blow.
Contact us if you have any concerns in the meantime. We’re here to help you navigate these challenging times.