The federal government will provide a historic wage subsidy to about 6 million workers who will receive a flat payment of $1500 per fortnight through their employer, before tax.
The JobKeeper payment plan will start in May but be back-dated to 30 March 2020. The new scheme forms part of the government’s third economic assistance package which totals $130 billion. More than 200,000 businesses have registered for the JobKeeper payment plan.
According to Prime Minister Scott Morrison, employers are under a legal obligation to ensure the subsidy is passed onto their employees in full.
How does it work?
Eligible employers will receive a fortnightly payment of $1500 to pay each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by the employers. Every eligible employee must receive at least $1500 per fortnight before tax.
The payment will be administrated through the ATO. Businesses can be advised to register their interest in JobKeeper updates on the ATO website.
Treasurer Josh Frydenberg said: "This $1500 payment is a flat payment and is the equivalent of about 70% of the median wage and represents about 100% of the median wage in those sectors most heavily impacted by the coronavirus like retail, like hospitality and tourism."
Eligible employers will be those with an annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30 per cent or more since 1 March 2020 over a minimum one-month period. Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50 per cent or more to be eligible.
Full time and part time employees, including stood down employees, would be eligible to receive the JobKeeper payment. Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the payment. An employee will only be eligible to receive this payment from one employer.
The subsidy will include not-for-profit employees and New Zealanders who work in Australia but are typically unable to access welfare support. Self-employed individuals are also eligible to receive the JobKeeper payment.
The subsidy is aimed at preventing workers from being stood down.
For more information on the payment, read the Australian government's
fact sheet.
More information for employers
There are a number of obligations employers must comply with before they can receive the JobKeeper payment. Read the Australian government's fact sheet
dedicated to employers for a breakdown of these obligations.
More information for employees
There are a number of obligations employees must comply with before they receive the JobKeeper payment. Read the Australian government's fact sheet
dedicated to employees for a breakdown of these obligations.
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