As expected, the $1,500 per fortnight wage subsidy that was the major part of the last Federal Government stimulus package passed Federal Parliament last night without any changes. Although the Opposition challenged whether the subsidy should be extended to all casuals rather than just those with over 12 months service, the importance of the subsidy for Australians was prioritised and the Bill was passed with no formal opposition.

The first payments will be made from the first week in May to cover the wages paid to eligible employees in April. There are still many questions that are yet to be resolved and will be answered over the coming weeks as the ATO and Treasury release further guidance on how it will implement and interpret the law. We will keep you updated on these but at this stage we recommend the following: –

– any potentially eligible businesses should register their interest in this scheme if they haven’t done so already. The ATO has been given flexibility to determine whether a business meets the drop in turnover criteria so even if you may be below this threshold you may be eligible depending on your particular circumstances.

– continue paying your employees their usual wages. The measure makes clear that this payment is a subsidy paid to employers to reimburse for payments already made. Businesses need to pay employees over the eligible period and must negotiate with their banks to receive funding to assist with these payments. Employers have the ability to negotiate with employees a reduction in hours but must keep the same hourly pay rate. It is essential employees are still on the books of employers to be eligible and they must be paid a minimum of $1,500 per fortnight.

– employers who have registered for the scheme should notify potentially impacted employees. Employees are only eligible for one JobKeeper payment and cannot also receive the JobSeeker payment.

If you have any queries or need assistance, please do not hesitate to contact us.