On 30 March 2020, the Federal Government announced details of a new wage subsidy called the ‘JobKeeper Payment’. Employers that want to apply for the wage subsidy will need to register (registration details are contained in the link provided below).
The wage subsidy will provide employers with a fortnightly subsidy of $1,500 per employee for a maximum period of 6 months. The subsidy will commence to be paid by the Government to eligible employers from the first week of May 2020 but will be retrospectively calculated from 30 March 2020.
In order to apply for the wage subsidy, there are various tests that need to be satisfied:
In order to obtain the wage subsidy, the wage of the employee must be at least equal to $1,500 per fortnight – if the employee receives a wage of less than $1,500 per fortnight, the employer would not be eligible to receive the wage subsidy unless they firstly ‘topped-up’ the wage of the employee to at least $1,500 per fortnight.
For employees that have already been stood-down, their employer would need to reinstate the employee and commence to pay them a wage of at least $1,500 per fortnight in order to obtain the wage subsidy from the Government. For employees that have already been made redundant, the employee would need to be re-employed in order for their employer to become eligible for the wage subsidy.
The Government press release also notes that businesses without employees such as sole traders can also apply for the subsidy provided they nominate the individual to which the subsidy request relates. Further details regarding the scope of this aspect of the subsidy will separately be released.
Click here to access the business.gov.au website which provides further details of the wage subsidy, examples of how it applies to particular employee situations, and the application process.
If you have any further questions, please email or contact Collins House on (03)96296922
Dear Valued Client,
We have attached important information in reference to the effects of COVID-19 for Collins House and our clients.
Please read the information carefully and do not hesitate to contact our office should you have any questions.
Please also find below, links to important information from the Australian Taxation Office and State Revenue Office in relation to COVID-19 and assistance from these government departments.
We would like to assure you that the team at Collins House are here to support your business and financial affairs throughout this time of uncertainty. We remain committed to minimising any disruption, and continue with business as usual.
Please click link here to read how Collins House plans to keep our staff, partners and clients safe.
In the interest of the health and safety of our valued clients and staff given the Covid-19 virus situation, our office will be closing on Monday 30th March for the Accounting Team with the Financial Planning Team working off-site from Tuesday 24th March 2020.
However, some of the Accounting Team will be onsite until further notice.
Our team members are available to assist you and your families via email, telephone and video links, and look forward to continuing to deliver high quality Independent Financial and Accounting Advice that is in your best interest.
I’d also like to take this opportunity to recommend the following informative video by Dr Michael Ben-Meir, Director of Emergency Medicine at Cabrini Hospital, which explains Covid-19 in laymen’s terms.
Regards,
Dominic Alafaci