The proposed ‘JobKeeper payment’ is one of the most significant government concessions Australian businesses are ever likely to access.
Legislation is expected to be passed in parliament this week. Bentleys will provide details and commentary shortly thereafter.
JobKeeper payments are expected to provide a wage subsidy of $1,500 per fortnight, per employee, for businesses affected by the economic impacts of COVID-19 (Coronavirus).
The concession is expected to significantly help businesses in sustaining operations during the downturn that we are currently experiencing.
To be eligible, businesses (with less than $1 billion turnover) will need to show a 30% or higher reduction in turnover.
Questions yet to be fully answered
- How do businesses show a 30% reduction in turnover?
- Which employees are eligible?
- Can businesses access the concession if they do not pay wages (e.g. family businesses who pay trust distributions to owners)?
Treasury has today released a Q&A document which addresses some of these issues. We expect legislation on these measures to be released this week. We will provide further insights and analysis once these rules are legislated.
What do you need to do now
You should take action now to:
- register your business on the ATO site if you haven’t already
- document how your turnover is or is likely to be impacted by COVID-19 restrictions, and
- consider which employees may be eligible and nominated.
Our experience is that most businesses are or will be impacted by COVID-19. We are here to help you assess your eligibility and help prepare your applications.
Contact your local Bentleys advisor for further information. We are doing everything we can to help businesses come out of this challenging time in good shape.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.