Australian Government Announce Economic Stimulus Package

On the 30th of March, Prime Minister, Scott Morrison announced a package on a scale “no Australian has ever witnessed”.

The Prime Minister unveiled a $130 billion economic stimulus package. Included in this package is the newly implemented JobKeeper Payment, which is aimed at small to medium sized businesses that have experienced at least 30 percent reduction in revenue as a result of the Coronavirus pandemic.

Companies with an annual turnover of more than $1 billion who have suffered at least 50 percent reduction in revenue, due to the Coronavirus pandemic can also access this funding.

Full and Part time employees are eligible for a fortnightly flat fee of $1500 if their employment date was prior to March 1st 2020. Casual workers can also access this funding if they have been in continued employment for more than 12 months. The scheme is also accessible by sole traders.

Federal Treasurer Josh Frydenberg said workers who have already lost their jobs may still be eligible for this payment. “If they were on the books from March 1, they would be employees who would be eligible,” he said.

He goes further, “if you were an employer who was forced to retrench workers, you will put them back on your books and you will be eligible for this payment.”

It is hoped that this scheme will keep millions of Australian residents employed and provide that needed incentive for businesses to adapt to the current situation. The plan is expected to support over six million Australians over the next six months.

Employees do not have to apply through the welfare system for these payments, instead the employers will continue to pay the employee and the government will reimburse them. The subsidy will flow through the ATO and businesses are legally obliged to pass on the payments to employees.

To learn more about these payments https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_0.pdf