Federal Government offers $130b in coronavirus wage subsidies for businesses to pay workers
Businesses will receive a fortnightly wage subsidy up to $1,500 per employee as part of a Federal Government bid to prevent millions of people from losing their jobs to the coronavirus pandemic.
• The Government expects up to 6 million people will access a $1,500 fortnightly wage subsidy
• The so-called JobKeeper payment is designed to keep people in work
• The Government will also lift the means-testing threshold for the partners of JobSeeker recipients
The subsidy is the central plank in a $130 billion economic stimulus package, the third and largest package the Government has announced in response to the coronavirus.
The Prime Minister also announced changes to the income test for people on the JobSeeker payment, meaning their partners could earn almost $80,000 a year before they were ineligible for the payment. The Government last week doubled the JobSeeker payment, previously called Newstart, to $1,100 a fortnight.
The wage subsidy will include not-for-profit employees and New Zealanders who work in Australia but are typically unable to access welfare programs. Part-time workers and casuals with at least one year in their job can receive the payment, which is slated to start flowing in early May. It will also be backdated to include anyone who has been stood down due to coronavirus. However, a person cannot receive both the JobSeeker and JobKeeper payments.
Treasurer Josh Frydenberg said the JobKeeper scheme would benefit the hardest-hit sectors. “This $1,500 payment is a flat payment and is the equivalent of around 70 per cent of the median wage and represents about 100 per cent of the median wage in those sectors most heavily impacted by the coronavirus like retail, like hospitality and tourism,” he said.
Employers with an annual turnover of less than $1 billion that have experienced a 30 per cent fall in revenue since March 1 will be eligible for the wage subsidy.
Sole traders, self-employed people, partnerships and trusts will also be eligible.
The Australian Tax Office will oversee the payment and has already created a website for companies to register interest in the JobKeeper program. More than 8,000 businesses registered with the site within an hour of the Prime Minster and Treasurer announcing the scheme.