Prime Minister Scott Morrison and Treasurer Josh Frydenberg announced the third round of Federal government stimulus measures, in response to the ongoing coronavirus pandemic.
This came in the form of a $130 Billion package to subsidise wages for Australians over the next 6 months, these include: -
WAGE SUBSIDY SCHEME
- $1,500 per fortnight payment
- Effective date as of today, 30th March 2020
- Payments will be made to businesses, to pass on to their employees, including employees that have been stood down since 1 March 2020
- Expected to help 6 million Australians
- Businesses that have a turnover that is reduced by 30% or more are eligible to receive the subsidy
- Available to employees that were employed and registered with a business under Single Touch Payroll as of 1 March 2020
- Payable for Full Time, Part Time and Casual Staff that have been employed > 12 months are all eligible.
- No pro-rata – flat payment per employee
- Payments will flow via the ATO to small business, starting in May, and backdated to today
What to do now?
At present the measures are still required to be enacted through Parliament. This will be fast tracked according to the PM who indicated that he had already had discussions with the Opposition Leader. As such, there is a chance that some of the details may be amended prior to being enacted. We will keep you appraised as this progresses.
This measure will have significant impacts to almost all businesses, and thought will be required as to how best to apply this to your circumstances. If you require any assistance at all with preparing a financial model to assist you in making key decisions around your business and your team, we encourage you to please be in contact with your adviser at Maxim.
Please don’t hesitate to reach out and call us at any time.
Stay safe and support each other.