Support Available for Businesses
JobKeeper payment for employers and employees
Last updated 23 July
What is new?
The JobKeeper Payment was planned to finish on 27 September 2020, but will be extended by 6 months to 28 March 2021 for eligible employers. Fortnightly wage subsidy ($1500) is legislated until September 27. However from the first week in October, two payment tiers will be introduced.
The top rate will be reduced to $1200 a fortnight, while those working less than 20 hours a week will be eligible for a $750 payment from October to December.
Between January and March those payments will again lower to $1000 for the full rate which requires 20 hours of work a week or more, and $650 for less than 20 hours a week.
Also, from 28 September 2020 all businesses and employees will be required to reassess their eligibility, and the JobKeeper Payment scheme will remain open to new participants who are eligible.
| Date | Full rate per fortnight | Less than 20 hrs worked per fortnight rate |
|---|---|---|
| 28 September 2020 o 3 January 2021 | $1,200 | $750 |
| 4 January 2021 to 28 March 2021 | $1,000 | $650 |
What is it?
The JobKeeper wage subsidy allows businesses impacted by COVID-19 have access to $1,500 (before tax) fortnightly payments for each full-time or part-time staff members up to 6 months so that they can retain their employees.
JobKeeper payment rules:
To ensure the integrity and the efficient operation of the JobKeeper payment, the Government has announced the operation of some rules. Find out more information about the JobKeeper Update here.
Extension of time to enrol for the JobKeeper scheme
The Australian Commissioner of Taxation has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.
Eligible employers
- Businesses with annual turnover of under $1 billion that have dropped over 30% in turnover because of the coronavirus.
- Businesses with annual turnover of $1 billion or more will be eligible if their turnover have dropped over 50%.
- The business is not subject to the Major Bank Levy.
- Not-for-profits, sole traders and self-employed people will also be eligible if they meet the requirements above.
Eligible employees
- The subsidy will be available for employees over 16 years old who were on an employer’s books as at 1 March 2020.
- It applies to full-time, part-time and casual employees who have been employed at least for 12 months, as of March 1 2020.
- Employees can only receive the JobKeeper payment from one employer.
- The JobKeeper payment is not available for employees on temporary visas.
How to claim
- Businesses can enrol in the JobKeeper Scheme via ATO’s Business Portal by using an online form or through your registered tax professional.
- Once enrolled, businesses have to identify the eligible employees, and maintain them.
- Businesses must provide monthly declaration to ATO
When the payment start?
Businesses are expected to receive the first payment in the first week of May 2020, however they will be backdated to 30 March 2020.
Fact Sheet
JobKeeper Payment for small businesses, including sole traders
Boosting cash flow for employers
Last updated 15 July
What is it?
The government is providing $20,000 to $100,000 tax-free cash flow support to eligible businesses so they can keep operating, pay their rent, electricity and other bills and retain staff. This will be done through 2 sets of cash flow boosts.
Eligibility
- Small or medium business entity, including not-for-profits, sole traders, partnership, company or trust with an aggregated annual turnover under $50 million (generally based on prior year turnover) will be eligible
- Held an ABN on 12 March 2020 and continues to be active
- Made eligible payments you are required to withhold from (even if the amount you need to withhold is zero)
How to apply?
You DON’T need to apply as the payment will be automatically calculated by ATO.
When can you receive it?
(1). Initial boost:
The initial cash flow boosts will be delivered as credits in the activity statement system from 28th April 2020 upon employers lodging activity statements for each monthly or quarterly period from March to June 2020.
(2). Additional payment:
- Eligible entities who received initial cash flow boosts will receive additional cash flow boosts when lodging your activity statements for each monthly or quarterly period from June to September 2020.
- The amounts will equal the total amount of initial cash flow boosts received. This will be delivered in either 2 or 4 instalments, depending on your reporting period.
Fact Sheet
Enhancing the instant asset write-off
Last updated 15 July
What is it?
To provide cash flow benefits for businesses, the government has been increased the instant asset write-off threshold from $30,000 to $150,000 and extended to businesses with turnover less than $500 million.
Eligibility
- Businesses with an aggregated turnover of less than $500 million (up from $50 million)
- The date business purchased the asset and it was first used or installed ready for use
- The cost of each asset being less than the threshold.
When does it apply?
This applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe.
