JobKeeper Scheme and Victorian State Government Business Support Fund Update
To address the turbulent economic situation fuelled by the COVID-19 outbreak, the Government has introduced numerous new measures including the JobKeeper scheme to support individuals and businesses affected by the crisis. Today we are reaching out to update you on some new support initiatives:
JobKeeper Payment Scheme
Earlier this week, the Federal Government unveiled the JobKeeper Payment in a bid to support businesses severely impacted by the pandemic and their workers.
The key elements of the JobKeeper Payment Scheme are as follows:
- Eligible employers will receive a payment of $1,500 per fortnight for eligible employees, starting from 30 March for 6 months.
- Employers with a turnover of less than $1 billion will be eligible if turnover has reduced by at least 30% compared to a comparable period, of at least a month, a year ago.
- Employers with turnover of more than $1 billion will be eligible if turnover has reduced by at least 50% compared to a comparable period, of at least a month, a year ago.
- The employer must have been in an employment relationship with eligible employees as of 1 March 2020 and each eligible employee must be currently engaged in order to receive JobKeeper Payments.
- Employers can claim the JobKeeker payment for employees that have been stood down (not terminated) but they must pass the payment on to those employees.
- Not-for-profit entities and self-employed entities (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.
- Payments are to be delivered through the ATO. Employers will be required to register an intention to apply on the ATO website and show that they have or will experience the required turnover decline.
Please refer to this Fact Sheet, which describes these features in more depth.
If you believe you are eligible for the JobKeeper Payment, please contact the team at Lockwood Partners to assist you.
State Government Business Support Fund
Victorian businesses who are most severely impacted by the Coronavirus outbreak will be provided support by the $500 million hardship fund, which the Victorian State Government has been establishing in the last week. This fund has been named the Business Support Fund.
Our State Government has now announced that this fund will take the form of $10,000 grants per business to small businesses that:
- Employ staff;
- Have a turnover of more than $75,000;
- Have a payroll of less than $650,000; and
- Have been subject to closure or are substantially affected by the State’s shutdown restrictions.
To receive funding, businesses will need to provide a copy of their most recent Business Activity Statement (BAS). Applications can be made through the following link:
Please contact our office if you any questions about any of the above matters or any other Government relief measures which have been recently announced.