The Morrison Government has announced a $130 billion support package to help businesses maintain connection with their employees during the COVID-19 pandemic.
In the wake of several retailers closing their doors and standing down staff, the government has launched the 'JobKeeper Payment.'
The payment will be open to eligible businesses that have endured a significant financial hit caused by COVID-19 and will apply to approximately six million workers across Australia.
Employees will receive a flat payment of $1,500 per fortnight through their employer, before tax, in order to help businesses maintain a connection with their employees if they move into 'hibernation.'
The payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.
Where a business has stood down employees since 1 March, the payment will help them maintain connection with their employees.
Prime Minister Scott Morrison said that the payment will help Australian businesses bounce back on the other side.
"We will give millions of eligible businesses and their workers a lifeline to not only get through this crisis, but bounce back together on the other side.
"This is about keeping the connection between the employer and the employee and keeping people in their jobs even though the business they work for may go into hibernation and close down for six months.
"When the economy comes back, these businesses will be able to start again and their workforce will be ready to go because they will remain attached to the business through our JobKeeper payment," he said.
The program commenced on March 30, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the ATO.
Eligible businesses can begin distributing the JobKeeper payment immediately and will be reimbursed from the first week of May.
Treasurer Josh Frydenberg added that the country was about to go through one of the toughest times in its history.
"Businesses will close and people will lose their jobs. That is why we have doubled the welfare safety net.
"However, today we are going even further. Australians know that their government has their back.
"That is why we are delivering an historic $130 billion JobKeeper payment to support businesses and to help Australians in a job.
"This will keep Australian workers connected with their employer and provide hope and more certainty during these difficult and challenging times," he said.
The government is set to provide further updates on additional business cashflow support in coming days.
Eligible businesses can apply for the payment online and are able to register their interest via ato.gov.au
JobKeeper Payment eligibility criteria:
- Eligible employers are those with annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30% or more, since 1 March 2020 over a minimum one-month period.
- Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50% or more to be eligible.
- Businesses subject to the Major Bank Levy will not be eligible.
- Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, are also be eligible.
- Full time and part time employees, including stood down employees, are eligible to receive the JobKeeper Payment. Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the Payment. An employee will only be eligible to receive this payment from one employer.
- Eligible employees include Australian residents, New Zealand citizens in Australia who hold a subclass 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other).
- Self-employed individuals are also eligible to receive the JobKeeper Payment.