Third Coronavirus Stimulus Package

Dear Good Tax Accountants (GTA) customers,

Thank you for your ongoing support.

Australian Government announced Third Stimulus Package on 30^th March 2020 to support the economy, business and employment in the face of the coronavirus health crisis in addition to the Corona Stimulus package.

The measures include the below.

JobKeeper Payment

JobKeeper Payment is to help businesses impacted by the Coronavirus to continue paying their employees. Eligible employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum of 6 months. Eligible employees will receive a minimum of $1,500 per fortnight, before tax.

JobKeeper Payment is $400 more than the $1,100 JobSeeker payment (per fortnight).

In order to receive a payment, both the employer and employee must meet eligibility criteria.

Eligible Employers

Eligible employers are businesses (including companies, partnerships, trusts and sole traders), not-for-profits & charities, and self- employer individuals (business without employees)

Businesses with a turnover of less than $1 billion that have lost 30% or more of their revenue compared to a comparable period a year ago.
Businesses with a turnover of $1bn or more and with at least a 50% reduction in revenue compared to a comparable period a year ago.
Self Employed individuals without Employees that have lost 30% or more of their revenue compared to a comparable period a year ago.

Eligible Employees

Employed by an eligible employer at 1 March 2020
Full-time, part-time, long-term casuals (employed on a regular basis for longer than 12 months as at 1 March 2020).
Over 16 years old
Australian Citizens, Permanent Resident Visa holders and Subclass 444 Visa holders (New Zealanders who has been residing continually in Australia for 10 years or more).
Temporary Visa holders (Working Holiday Visa and Student Visa) are not eligible at the moment.

Payment Process

Eligible employers will be paid $1,500 per fortnight per eligible employee from 30 March 2020, for a maximum of 6 months. Eligible employees will receive from their employers a minimum of $1,500 per fortnight.

For employees whose income is normally less $1,500 per fortnight

Although an employee normally earns less than $1,500 per fortnight before tax, their employer must pay a minimum of $1,500 per fortnight, before tax.

For employees who have been stood down or sacked

Employees (employed before 1 March 2020) who are sacked as a result of business shut down due to Coronavirus such as cafes, restaurants, cinemas, casino etc., can receive $1,500 per fortnight, when they are re-employed by the same eligible employer.

Eligible employers will begin to receive JobKeeper Payments from the first week of May. In the meantime, employers must continue paying their employees and then claim the money from the first week of May. Employers also must continue to pay the superannuation on regular wages. However, it is not compulsory to pay superannuation on additional job keeper payments.

Please note that:

Employees receiving the JobKeeper payment cannot also receive the JobSeeker payment.
People who have already applied for JobSeeker can withdraw and apply for job keeper payments if they are re-engaged by their employer.
An employee cannot receive JobKeeper payments from two or more employers.
After the registration of JobKeeper Payment, employers must declare the number of employees as well as business activity on a monthly basis.

Self-employed Individuals without Employees

Self Employed individuals without Employees can apply for JobKeeper Payment with the proof of that they have lost 30% or more of their revenue compared to a comparable period a year ago.
Must provide an ABN for their business, nominate an individual to receive the payment and provide individual’s Tax File Number (TFN), and must declare business activity on a monthly basis.