Client Update – COVID19 – Australian Government – Third Stimulus Package Measure
Following on from the announcement yesterday by the Prime Minister, Scott Morrison, and the Treasurer, Josh Frydenberg, and in addition to the client bulletin that was issued late yesterday afternoon, some additional information has been released by the ATO and Treasury.
WHAT YOU NEED TO KNOW
- All existing clients of Dean Robinson Group Pty Limited, that employ staff, have been registered with the ATO overnight for the Job Keeper Payment Subsidy.
- That means that, for the moment, you do not need to do anything further – you’re registered for the scheme
- The $1500 per fortnight payment can only be claimed once per employee. This means, if you have a staff member that has multiple jobs, the Job Keeper Payment Subsidy is paid to the employer the employee has claimed the Tax Free Threshold from.
- The $1500 per fortnight payment is before tax. You will need to ensure that income tax is withheld from the payment in accordance with normal PAYG withholding requirements.
- Job Keeper Payments apply from Monday 30th March, 2020 – some media outlets are incorrectly reporting this as Monday 1st March, 2020.
- The first payment will be received by employers from the ATO in the first week of May 2020.
- The payment is for a maximum of 6 months.
- The number of eligible employees employed by the business will need to be reported to the ATO on a monthly basis. The method of reporting is not yet defined.
- The Single Touch Payroll system will be the avenue through which you will transmit some employee information to the ATO. Please ensure your Single Touch Payroll details are up to date.
AUSTRALIAN GOVERNMENT INFORMATION
- The Australian Government has an excellent online resource of each of the Major Stimulus initiatives that have been released in relation to the COVID 19 outbreak.
- Here is the website you should refer to:
- Here is the link to two factsheets released by Treasury since yesterday’s announcement.
- To access the factsheet released by Treasury in relation to the Boosting Cash Flow for Employers initiative announced on Sunday 22nd March, 2020 and the previous announcement on Thursday 12th March, 2020 in relation to wage subsidies for Apprentices and Trainees.
- Go to the Treasury website detailed above.
- Scroll down to “Support for businesses” and hit “Enter”
- Scroll down to the “Boosting cash flow for employers” subsection
- Click on the Fact Sheet link – “Cash flow assistance for businesses”.
- Should you wish to discuss these measures or any other issues at this time, you may contact me as follows:
Office Phone – 02 4654 5000
Mobile Phone – 0409 207 969
Email – email@example.com
- As more updates are provided, I will make them available to clients.
- These are challenging times. However, we will all come through this together and build a more resilient future for ourselves and our family businesses.