The Government announced it's next measure in response to COVID -19.
In summary, :
- Wage subsidy - $1,500 per fortnight will be paid to all employers, including sole traders, that have been affected by COVID-19 for each worker that is employed which will be backdated to 1 March 2020.
- Employers will be eligible for the subsidy if their business turnover [sales] has reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month).
- It would be worth comparing your sales revenue for the calendar month of March 2020 compared to March 2019 to see if this is down 30%. If not, monitor 15 March 2020 to 15 April 2020 and compare this to the same period last year to see if that has a decline of 30% or more.
- The payment will be made to the employer or sole trader, administered through the tax system, and will last for at least 6 months with the first payments expected to be made in the first week of May 2020.
- Businesses will be able to register their interest in participating in the Payment from today from the ATO website. This takes less than 5 minutes and I recommend you register now as this will ensure further information is provided (it doesn't mean you will claim - just that you can if criteria met).
- Businesses who no longer employ will not receive the JobKeeper subsidy - i.e. it is designed for businesses to help retain and continue to be connected to employees (even during a "hibernation" period).
Use these links to access further information in relation to the JobKeeper Payment for employees and employers released by the Government.
We wish you all the best over the coming period.
We are continuing to work hard to keep on top of all of the enquiries that are coming through, whilst continuing to progress the existing tax, accounting and business advisory services.
Disclaimer: All information provided in this newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.