Government Assistance to Businesses – Update 30th March 2020
JobKeeper Payment and other announcements
Government announces JobKeeper Payment to keep Australians employed
If your business has been significantly impacted by the Coronavirus you will be able to access a wages subsidy to continue paying your employees. The program will enable you to claim a fortnightly payment of $1500 per eligible employee from 30 March 2020 to a maximum of 6 months.
For an Employer to be eligible:
Annual turnover must be less than $1billion and revenue must have reduced by 30% or more due to COVID19
Businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities including charities are also eligible
For an employee to be eligible:
The employee must have been on the Employers books on 1 March 2020
The employee must be retained or continue to be engaged by that employer
The employee can be either part-time or full time. Casual employees are also eligible where they have been with an employer for at least the previous 12 months
The employee is at least 16 years of age
The employee is an Australian Citizen, or the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.
The employee is not in receipt of a JobKeeper Payment from another employer
Timing of the payment:
The subsidy commences on 30 March 2020, with the first payments to be received by Employers in the first week of May. Payments will be made to the employer by the ATO monthly in arrears.
JobKeeper payment – information for employees
The JobKeeper payment helps businesses significantly impacted by the Coronavirus cover the costs of their employees’ wages, so more Australians can retain their jobs and continue to earn an income. Your employer will notify you if they intend to claim the fortnightly payment of $1,500 on your behalf.
Partner income test relaxed for JobSeeker Payment and Coronavirus Supplement
The Government has announced that it will temporarily relax the partner income test to ensure that an eligible person can receive the JobSeeker Payment, and associated Coronavirus Supplement, provided their partner earns less than $3,068 per fortnight, around $79,762 per annum. This will apply for the next six months.
The personal income test for individuals on JobSeeker Payment will still apply
ATO grants rent relief to SMSF’s
The question has arisen as to whether an SMSF landlord can give the tenant who is a related party rent relief as a result of the financial impacts of COVID-19. Charging a related party at a price that is less than market value is usually a contravention.
ATO’s response:
“Some landlords are giving their tenants a reduction in or waiver of rent because of the financial impacts of the COVID-19 and we understand that you may wish to do so as well. Our compliance approach for the 2019–20 and 2020–21 financial years is that we will not take action where an SMSF gives a tenant – who is also a related party – a temporary rent reduction during this period.”