ATO Release Details of JobKeeper & Cash Flow Boost

ATO release details of JobKeeper & Cash Flow Boost

The ATO have updated their website to include the rules, regulations and processes for businesses to access the JobKeeper & the Cash Flow Boost stimulus package. Contact Us if you’d like to apply

JobKeeper Payment

The government has introduced a $130 billion JobKeeper Payment scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs.

The JobKeeper Payment is a subsidy for businesses to pay either:

1. employees,
2. sole traders
3. 1 associate of closely held entities such as trusts and companies, $1,500 per fortnight, in order to stimulate the economy and keep people employeed.

Although the ATO has outlined what is required, actual enrollment for JobKeeper isn’t available until 20th of April, but getting your ducks in a row before then, will be of obvious benefit so that come 20th April your business is ready.

Cash Flow Boost Payment

The Cash Flow Boost payment (no less than $10,000 and no more that $50,000) is paid around 14 days after the due date of the March Quarterly BAS or March Monthly IAS depending on your reporting period.

 

Additional Cash Flow Boosts

Additionally eligible entities who received initial cash flow boosts will receive additional cash flow boosts between July to October 2020. These will be delivered in either two or four instalments, depending on your reporting period.

All the ATO information on JobKeeper & Cashflow Boost are available here.

ATO Cash Flow Boost Link

ATO JobKeeper Link

The requirements for JobKeeper are the most complicated and will require proof of a 30% decline in revenue for business with turnover less than 1 Billion. Substantiating this 30% decline and registering eligible employees may seem overwhelming. You need to do your normal job of running a business, so let vTax Australia help you by contacting us today.

We will let you know, via our  news link above or via email if you contact us of any more information as it becomes available, including letting you know when you’re able to enroll for JobKeeper payments.

 

 

JobKeeper scheme legislation achieves royal assent

The JobKeeper scheme legislation achieves royal assent Legislation.  The new legislation establishes the JobKeeper scheme of wage subsidies in the form of payments made via employers has passed both houses of Parliament and has achieved royal assent.

The bills concerned (the Coronavirus Economic Response Package (Payments and Benefits) Bill 2020 and the Coronavirus Economic Response Package Omnibus (Measures No. 2) Bill 2020) also amend the Fair Work Act 2009 to support the practical operation of the JobKeeper scheme, as well as other measures including the guarantee of lending to small and medium enterprises, and consequential amendments.

We now await the legislative instrument to be issued by the Treasurer that set’s out the details of how the JobKeeper package works in detail.  vTax Australia will keep you abreast as information becomes available. We are also waiting for a major change to the ATO website that will give in-depth details of how the ATO will administer all of the government’s stimulus packages, including its attitude towards the application of the anti-avoidance provisions.

The details of eligibility for particular payments as well as the amount of payments and the time when they are to be paid will be set out in the rules made by the Treasurer, so that arrangements can be modified appropriately in response to the impacts of COVID-19.

In the meantime, Treasury has issued Jobkeeper Payment — Information for Employers, fact sheet (pdf) as well as JobKeeper Payment — Information for employees fact sheet (pdf).

 

Pleasw contact us if you have any questions

Stimulus Payments to Households and Income Support Recipients

Stimulus Payments to Households and Income Support Recipients

 

 

Stimulus payments to households and Income Support Recipients

Stimulus payments to households

Also provided a part of Stimulus payments to households and Income Support Recipients Package is the payment of the first economic support payment of $750 to approximately 6.6 million Social Security and Veterans’ income support recipients, Farm Household Allowance recipients, Family Tax Benefit recipients and holders of a Pensioner Concession Card, Commonwealth Seniors Health Card or Commonwealth Gold Card.
There will also be a second economic support payment of $750 to the above people who receive a qualifying payment or hold a qualifying concession card on 10 July 2020. This  second payment will not be paid to a person who receives, on 10 July 2020, the new Coronavirus supplement detailed below.

Additional supplement for income support recipients

Stimulus payments to households and Income Support Recipients Package also amends the Social Security legislation to provide financial assistance to people who are
affected by the COVID-19 crisis. Australians can claim Jobseeker payment or Youth Allowance (other) if they are an Australian resident (or exempt from the residence  requirements) and satisfy the requirements outlined in a legislative instrument. If qualified, a person receives the current rate of Jobseeker payment or Youth Allowance (other) along with a fortnightly supplement of $550 or such other amount determined by legislative instrument. The supplement is also available to existing recipients of Jobseeker payment, Youth Allowance (other), Parenting Payment, Special Benefit, and the Farm Household Allowance. The Minister for Families and Social Services may extend the supplement to other social security payments by legislative instrument should a need arise. The supplement is available for an initial six month period, commencing on 27 April 2020. The Minister for Families and Social Services may also extend the six-month period and extend the supplement to other social security payments, depending on how the current crisis unfolds. Recipients of Jobseeker payment or Youth Allowance (other) (which includes new and existing recipients) and Parenting Payment are also exempt from the assets test, liquid assets waiting period, ordinary waiting period, newly arrived resident’s waiting period and seasonal worker preclusion periods. The exemption from the newly arrived resident’s waiting period also applies to special benefit. The supplement and exemptions also apply to recipients of the Farm Household Allowance. Note that the date of effect for these measures is 27 April.

All information above was sourced from the  Australian Treasury 

Please contact us if you need any help understanding Stimulus payments to households and Income Support Recipients.