The Government has just announced it’s third stimulus package update in response to the coronavirus outbreak.
A wage subsidy will be available to eligible businesses and not-for-profit entities who can demonstrate a loss in revenue of 30 per cent or more when compared to the relative period a year ago. Businesses with a turnover of $1 billion or more would need to demonstrate a loss in revenue of 50 per cent.
The subsidy would include a payment of $1,500 per fortnight for each eligible employee for a period of 6 months maximum. Eligible employees are those that were employed by the business from 1st of March 2020, including those that have been stood down and sole traders. They also have to be employed under a full-time, part-time or long-term casual contract and be over 16 years of age.
If a business receives this subsidy then they must pay at least $1,500 to the employee (before tax) each fortnight. Examples below.
- If an employee usually receives $1,000 per fortnight (before tax) then the business would now pay them $1,500 per fortnight (before tax)
- If an employee usually receives $2,000 per fortnight (before tax) then the business would continue to pay that amount to them
- If the business operates as a sole trader without employees and they can demonstrate a 30 per cent loss in revenue then they would receive $1,500 per fortnight
You can register your interest with the ATO by clicking on the below link. Once parliament has passed this new package, the ATO will contact you to make arrangements for the application and information required.