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COVID-19 Government Assistance information for employers

06 Apr 2020

The coronavirus outbreak has lead to a range of government financial assistance being released to help Australians deal with this crisis financially. We’ve outlined the various assistance opportunities relevant to flooring employers below. We will update this page as changes to legislation occur in coming weeks.

UPDATE: JobKeeper Applications are now open.

JOBKEEPER PAYMENT

What is the JobKeeper payment?

If your business is suffering a 30% downturn in turnover as a result of the Coronavirus you could be entitled to the following JobKeeper Payment. This is a subsidy from the government to help these businesses continue to pay their employees. Affected employers will be able to claim a fortnightly payment of $1500 per eligible employee from 30^th March 2020, for a maximum period of 6 months.

Which employers are eligible for the JKP?

Employers of staff and apprentices could be eligible for the JobKeeper subsidy, if their business has experienced the required downturn to be eligible. 

Employers will be eligible for the subsidy if:

• their business has a turnover of less than $1 billion and their turnover has fallen by more than 30 per cent; or
• their business has a turnover of $1 billion or more and their turnover has fallen by more than 50 per cent; and
• the business is not subject to the Major Bank Levy.

Read more about eligible employers in the Treasury Fact Sheet.

As a business, what do I need to do to get JKP?

For an employer to receive the JobKeeper payment, they must:

• Register an intention to apply on the ATO website.
• Assess that you have or will experience the required 30% or more downturn in your business.
• Be able to provide information to the ATO on eligible employees.
• Ensure that each eligible employee receives at least $1500 per fortnight (before tax).
• Notify all eligible employees that they are receiving the JobKeeper payment.
• Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.

What does ‘eligible employee’ mean?

Eligible employees are employees (including apprentices) who:

• are currently employed by the eligible employer (including those stood down or re-hired)
• were employed by the employer at 1 March 2020 as full time or part time permanent employees, or
• long-term casuals employed on a regular basis for longer than 12 months as at 1 March 2020);
• are at least 16 years of age;
• are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder; and
• are not in receipt of a JobKeeper Payment from another employer
• the employer would pay the employee the amount they are entitled to receive under the agreement between them;
• the employer would retain the $1,500 JKP as partial reimbursement; and
• superannuation would be payable on the wage.

How much will eligible employers need to pay employees? What about superannuation?

The JKP is a flat $1,500 per fortnight paid, in the first instance, to eligible employers for each of their eligible employees.

For an eligible employee who continues to work and who, in the absence of the JKP, would be entitled to a wage of at least $1,500 per fortnight:

• the employer would pay the employee the amount they are entitled to receive under the agreement between them;
• the employer would retain the $1,500 JKP as partial reimbursement; and
• superannuation would be payable on the wage.

For an eligible employee who continues to work and who, in the absence of the JKP, would be entitled to a wage of less than $1,500 per fortnight:

• the employer would pay the employee the amount they are entitled to receive under the agreement between them: PLUS,
• the difference between this amount and $1,500 per fortnight (both amounts are pre-tax);
• the employer will be reimbursed for the wage they pay the employee;
• the rest of the $1,500 is paid to the employee (the top-up component); and
• superannuation is only paid on the wage component (not the top-up component unless the employer wants to pay more super than required).

More information can be found on the JobKeeper fact sheet.

CASH FLOW ASSISTANCE
There is also Cash Flow assistance available for employers including cash wage subsidies for apprentices.

This could mean you are eligible to receive cash injections up to $50,000 to cover:

• salary and wages
• director fees
• eligible retirement or termination payments
• voluntary withholding from payments to contractors
  
  

Even if your Business is not experiencing a 30% downturn Employers can register for the Apprentice Wage Subsidy from 2 April 2020. If you haven’t received an email regarding this subsidy and you think you are eligible, you need to contact your Australian Apprentice Support Network provider to register and final claims for payment must be lodged by 31 December 2020.

BUSINESS SUPPORT FUND

In addition, the Victorian Government has launched the $500 million Business Support Fund to help small businesses survive the impacts of the coronavirus (COVID-19) pandemic and keep people in work. This is different to the SAT Wage Subsidy, and it’s also different from the JobKeeper Fund which will be administered by the ATO. This Business Support Fund is managed by the Victorian Government.

If employers have any questions about this Fund they must contact 13 22 15.

Applications for this fund can be made via this link

Eligibility requirements

Businesses are eligible to apply for a grant through the Fund if they meet the following criteria:

• Have been subject to closure or highly impacted by Non-Essential Activity Directions issued by the Chief Health Officer to-date; and
• Employ people; and
• Have a turnover of more than $75,000; and
• Have payroll of less than $650,000; and
• Hold an Australian Business Number (ABN) and held that ABN at 16 March 2020 (when the State of Emergency External was declared); and
• Have been engaged in carrying out the operation of the business in the Australian State of Victoria on 16 March 2020.

APPLY for the JobKeeper Payment here.

Resources

Main Treasury website with all economic support for business

JobKeeper payment Fact sheet

Support for apprentices and trainees