30 March 2020 / COVID-19

PM's JobKeeper Payment Subsidy Announcements

The Prime Minister just made the following announcements:

  • The Australian Government is delivering a plan to provide Australians with an economic lifeline for the many months ahead
  • They are trying to protect and preserve the economy
  • Many countries in the months ahead and perhaps beyond that may see their economies collapse or hollow out
  • In the very worst situations some countries may fall into chaos
  • This will not be Australia
  • It will be dealt with using very Australian solutions
  • Using Australian systems to address these situations
  • Keeping Australians in jobs and businesses in jobs
  • Cushioning the blow for those who will be significantly impacts
  • The latest package will come at a cost of $130 billion over the next six months is in addition to the $70 billion of support already announced by the Australian Government (plus $15 billion of support by the States and Territories)
  • Support the jobs and livelihoods of more than 6 million Australians estimated to need the life line
  • The Federal Government is today introducing $1,500 JobKeeper fortnightly payment to keep Australians in their jobs
  • The Government will pay employers who will pay their employees and to make sure they do using the Single Touch Payroll system
  • To keep them in the businesses that employ them and bounce back on the other side
  • Want to keep the engine of our economy running through this crisis
  • Businesses large and small across the entire economy will share this with the welfare system to provide this income support
  • Sees every Australian worker the same way no matter what you earn
  • Extending arrangements for JobSeeker to those who are receiving payments / seeking to receive where they have a partner pay income test will be changed to annual income of $79,620 per annum to broader access to the payment (previously it was $48,000)

The Treasurer announced:

  • The Government is working closely with banks, utility and insurance companies to help customers get to the other side
  • Focused on keeping Australians in jobs and businesses in business
  • The JobKeeper payment is $1,500 flat payment per fortnight (about 70% of the median wage) and applies to everyone full-time and part-time, sole traders (casuals who have been with their employe for more than 12 months)
  • Employers and sole traders can apply to the ATO from today and back dated to 30 March 2020
  • If someone has been stood down since 1 March 2020, they are still eligible
  • Support applies to businesses with a fall in revenue of 30% (I missed the revenue for this category, but will update once I know)
  • and to businesses with a turnover of more than $1 billion with a revenue fall of 50%
  • There is no superannuation guarantee on the payment
  • Employers can top up the payment if an employee is paid more than $1,500 per fortnight

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