As the COVID-19 outbreak continues to devastate several industries and the Australian economy, both small and medium-size enterprises are confronting significant challenges. In order to survive and stabilize their businesses in the market, many owners are dropping expensive projects and laying off employees. So considering the drastic impact and financial implications of the Coronavirus pandemic, the Australian Government has introduced The JobKeeper Payment program to protect the employees at large.
Here’s how this program will work and benefit the employees:
What is JobKeeper Payment Program?
To combat the financial challenges posed by the COVID-19 pandemic, the Australian Government has announced a $130 billion program –The ‘JobKeeper Payment’ program.This stimulus Program features significant provisions that are intended to financially assist employees and businesses impacted by the corona pandemic. With the goal to prevent massive unemployment and business breakdown, this program aims to provide financial aid to more than 6 million workers.
Who all are eligible for this program?
To receive financial assistance, both employers and employees have to meet different eligibility criteria:
- Criteria for Employers: Australian Businesses that are structured as companies, partnerships, trusts, and sole traders, not-for-profits,and charities whose:
- Turnoveris less than $1bn and it will be reduced by more than 30 percent compared to the previous period. OR
- Turnover of $1bn or more with a 50% reduction in revenue as compared to the previous period.
- Registered charities (except educational institutions such as universities, secondary schools), whose turnover is declined by 15% or more.
Note: As per the federal government guidelines, Charities are allowed to exclude government revenue for their turnover test.
- Criteria for Employees:As per the latest guidelines, the eligible employee:
- Should be employed by an eligible employer on 1st March 2020
- Can be a sole trader, part-time, full-time, or long-term casuals employed on a regular basis.
- Must be financially independent and has the age of more than 16 years.
- Must be an Australian citizen–who holds a permanent, protected special category Visa or a non-protected special category visa.
- Must be residing continually in Australia for more than 10 years, or recognized as a New Zealander on a special category (subclass 444) visa.
How the payment process will undertake?
Employers need to pay $1,500 (before tax) per fortnight to all the eligible employees.Later, the employer will be reimbursed by the Federal Government in accordance with the guidelines of the JobKeeper Program. The subsidy will be recorded from 30thMarch2020, and employers will receive the first payment in the first week of May.
How to apply for this program?
Eligible employers can register an intension to apply on ato.gov.au and assess their turnover limit eligibility. For the purpose of accessing the JobKeeper Payment, the employer can provide information to the ATO. In turn,the government will keep on notifying you about the further process and provide an online application form. Also, the employees can’t apply to this program directly as it requires the ‘Employer’s Intent’ to register the company under this program.
Note: The Commissioner has extended the deadline for enrollment from 30 April 2020 to 31 May 2020.
How can RSG help you in this time of crisis?
Since the application and qualification procedure for the JobKeeper Payment program is quite complex, it requires professional help. This is where the team of RSG Accountants can help streamline the things for you. We can help you meet all the necessary obligations, prepare financial statements, and thereby get you qualified for the JobKeeper Program. With expert accountants onboard, RSG can help you to adapt the changing environment while keeping your business afloat. Our wide range of innovative and customer-focused services has helped many SMEs to get their business out of the financial weeds.
Just give us the chance to handle your finances, we promise to bring you back right on track!