Government announces $130bn historic JobKeeper payment

Addressing the media on Monday, the Prime Minister and Treasurer announced a $130 billion JobKeeper payment to help keep Australians in jobs as businesses tackle the significant economic impact from the coronavirus.

The payment will be open to eligible businesses that receive a significant financial hit caused by the coronavirus, and will provide the equivalent of around 70 per cent of the national median wage.

It is applicable to full and part-time workers, sole traders and casuals who have been with their employers for 12 months or more, and who had been stood down since 1 March.

Prime Minister Scott Morrison said the JobKeeper payment would bring the government’s total economic support for the economy to $320 billion or 16.4 per cent of GDP.

“We will give millions of eligible businesses and their workers a lifeline to not only get through this crisis, but bounce back together on the other side,” the Prime Minister said. 

“This is about keeping the connection between the employer and the employee and keeping people in their jobs even though the business they work for may go into hibernation and close down for six months.

“When the economy comes back, these businesses will be able to start again and their workforce will be ready to go because they will remain attached to the business through our JobKeeper payment.”

Subsidy to businesses

The JobKeeper payment is a subsidy to businesses and will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer, the Treasurer explained. 

While employers will receive a payment of $1,500 per fortnight per eligible employee, every eligible employee must then receive at least $1,500 per fortnight from this business, before tax. 

The program commenced on 30 March, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the Australian Taxation Office.

Eligible businesses have been told, however, that they can begin distributing the JobKeeper payment immediately.

Eligible employers are described as businesses structured through companies, partnerships, trusts and sole traders, as well as charities, with annual turnover of less than $1 billion and a reduction in revenue of 30 per cent or more since 1 March 2020 over a minimum one-month period. Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50 per cent or more to be eligible.  

Businesses can apply for the payment online and are able to register their interest via ato.gov.au