'JOB KEEPER' PAYMENT ANNOUNCED
30th March 2020
The Australian Government has today unveiled a third economic package of $130 billion aimed at preserving jobs during the COVID-19 crisis. This economic package is in addition to the previously announced Federal Government commitment of $189 billion earlier this month.
The JobKeeper Payment is a subsidy to businesses, which will keep more Australians in jobs through the course of the COVID-19 outbreak. The key elements of the payment are as follows:
- Employers will receive a payment of $1,500 per fortnight per eligible employee.
- Full time and part time employees, including stood down employees, would be eligible to receive the JobKeeper Payment.
- Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the payment.
- Self-employed individuals are also eligible to receive the payment.
- The payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020, and is retained or continues to be engaged by that employer.
- Payments will be made in the first week of May but will be backdated to commence today, 30 March 2020. Payments will be made monthly in arrears from the ATO.
- Eligible employers will be those with annual turnover of less than $1 billion who have a reduction in revenue of 30 per cent or more, since 1 March 2020 over a minimum one-month period.
- Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50 per cent or more to be eligible.
- Businesses structured through companies, partnerships, trusts, sole traders, not for profit entities, including charities, will be eligible.
- New Zealand citizens on a 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other) are eligible for the payment.
Eligible businesses can apply for the payment online and are able to register their interest via ato.gov.au
Job Seeker Payment Eligibility
The Federal Government also announced a relaxation to the income threshold for the Job Seeker payment for the partner of someone who has lost their job. For the next six months the partner income threshold has been increased to $79,762 per year from $48,000 per year.
Rental Eviction Moratorium
The National Cabinet announced on Sunday the following measures to support businesses and individuals impacted by the COVID-19 crisis.
- Residential and commercial landlords will be banned from evicting tenants under financial stress caused by the COVID-19 economic downturn for the next six months.
- Banks will act as a backstop by offering loan repayment deferrals to help landlords see through a fall in rental income. Both Federal and State Governments are working on a package of tax relief measures to ease the financial burden on property owners.
For further information regarding the announced packages, please contact the PVW Partners team.