Considering a global economic slowdown amid the outspread of Coronavirus, the Australian government has announced $130 Billion in the form of the JobKeeper Payment Program to support Australian businesses and their employees. The government is acting aggressively towards fighting this virus, but the increasing number of patients is deteriorating the global economy. While the full economic effects of the virus are still uncertain, the Australian government is taking necessary steps to support households and businesses. Apart from the JobKeeper program levied by the government, other schemes are also being enforced, such as:-
- Cash flow support for small and medium businesses
- Temporary relief for financially distressed businesses
- Increasing the instant asset write-off
- Backing business investment
- Supporting apprentices and trainees
- Not-for-profit organizations
- Support for sole traders
What is the Job Keeper Payment Program in Australia
Most businesses due to the shutdown of their operations are unable to maintain cash inflow and revenue generation, making it difficult to pay basic salaries to employees and other staff. Keeping this situation in mind, the Australian government has come up with the JobKeeper Payment Program. Under this program, businesses significantly impacted by the lockdown will be able to access a subsidy from the government in order to continue paying salaries to their employees. This assistance was necessary to aid to help businesses as well as employees.
Understanding the JobKeeper Payment Program in Detail
A business that is entitled to the JobKeeper payment will receive a fortnightly payment of $1500 per eligible employee from March 2020. The payment must have already been made to the employee in full. The payment provides the equivalent of 70% of the national median wage. In addition, a business may be entitled to the JobKeeper payment only if the business owner or a nominated owner is available to receive the payment, regardless of whether the business has eligible employees or not.