02 April 2020
As the economic and social impact of the COVID-19 pandemic becomes more apparent, the Federal Government has introduced a JobKeeper Payment to help employers retain their employees.
Here is a brief summary of the details for any MTP sector businesses, charities, or self-employed individuals in need of financial support.
The JobKeeper Payment provides $1,500 per fortnight, per eligible employee, for up to 6 months, starting on 30 March 2020. The first payment is to be received by employers in the first week of May. Employers must pass this payment on to their employees.
Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible. Self-employed individuals are also eligible to receive the JobKeeper Payment.
Employers must elect to participate in the scheme. You can do this at: https://www.ato.gov.au/general/gen/JobKeeper-payment/
To be eligible, an employee must have been on the employer’s books on 1 March 2020 and continue to be engaged by that employer.
The JobKeeper Payment is open to full-time, part-time and long term casuals (employed on a regular basis for at least the previous 12 months) and stood down employees. Employees that are re-engaged by a business that was their employer on 1 March 2020 will also be eligible.
Self-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30% decline in turnover relative to a comparable prior period (of at least a month).
Employers will be eligible for the JobKeeper Payment 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 prior period (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 percent relative to a comparable prior period (of at least a month); and
- the business is not subject to the Major Bank Levy.
For JobKeeper Payment details: https://treasury.gov.au/sites/default/files/202003/Fact_sheet_supporting_businesses_1.pdf
For Employers Factsheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_0.pdf
The team at MTPConnect is here to support the sector, and while we are working a little differently at the moment, we are just a phone call, email or video chat away if you need to get in touch.