Article By: Joey Tass, Lawyer Cappello Rowe Lawyers Sydney

In some relieving news for businesses, the Australian Government has announced a $130 billion support package for businesses that are significantly affected by COVID-19 by way of wage subsidy payments for the next six months.

The policy has been nicknamed the ‘JobKeeper’ allowance in that it involves paying employers $1,500 per fortnight per employee that is kept on the books for the next 6 months. The JobKeeper payment is briefly summarised as follows:

1. A fortnightly subsidy payment of $1,500 will be available for employers to help them retain their employees;
2. The subsidy will made from 1 May 2020 although will be backdated to 30 March 2020;
3. The subsidy will be available to full time/part time workers and sole traders. Casual workers are also eligible if they have been employed for more than 12 months as at 1 March 2020;
4. Those employees that are holders of certain Visas may also be eligible;
5. Employers must keep their employees on the books in order to be eligible for the subsidy;
6. Employers will be eligible for the subsidy if:(a) Their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30% relative to a comparable period a year ago (of at least a month); (b) Their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50% relative to a comparable period a year ago (of at least a month); and (c) The business is not subject to the Major Bank Levy.

The Australian Government has announced it’s intention to pass additional legislation to introduce this new measure.

Please see the attached Treasury Fact Sheet which provides further information on the JobKeeper payment.

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_0.pdf

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