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The Federal Government has announced that that the JobKeeper payment, which was originally due to run until 27 September 2020, will now continue to be available for eligible businesses until 28 March 2021. From the first week of October, the payment will be reduced, and a new, two-tiered system will be introduced to separate part-time and full-time payments. The overhaul will also feature tighter eligibility requirements for businesses to receive the subsidy.
What are the JobKeeper 2.0 changes?
The JobKeeper Payment scheme is a temporary subsidy for businesses significantly affected by coronavirus (COVID-19). The Government will provide a fortnightly payment of $1500 per eligible employee until 27 September 2020. The JobKeeper is administered by the Australian Taxation Office (ATO) to eligible employers, sole traders and other entities.
Employers need to pay eligible employees a minimum of $1500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month. The first payments to eligible employers commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.
The subsidy started on 30 March 2020, with the first payments received by employers in the first week of May.
Employers are eligible for the JobKeeper payment if all of the following apply:
Our COVID-19 Action Checklists outline immediate action items you can take now and practical considerations you should be thinking about to manage the potential impacts on your personal and business finances.
Download the checklists today and ensure you get the government stimulus measures available for your business and employees.
The Australian Taxation Office (ATO) will provide relief for certain tax obligations for businesses affected by the Coronavirus on a case-by-case basis.
ATO assistance will not be automatically implemented. We can help request assistance for you from the ATO, and if eligible, the ATO will tailor their support arrangements for you.
If you are not a current client, you can also call the ATO Emergency Support Infoline on 1800 806 218 to discuss relief options based on your needs and circumstances.
Other ways of contacting the ATO can be found on the ATO Contact page.
Contact the NSW Business Concierge Service on 13 77 88 or visit the COVID-19 help for small businesses page.
Contact the Business Victoria hotline on 13 22 15 for more information, or access the Coronvirus business support page.
Visit Business Queensland or contact the Small Business Holtine on 1300 654 687.
Read more at the ACT Government website.
Contact South Australia Business at 1300 142 820, or visit the Financial Support for SA Businesses page.
Tasmania's grants previously administered through Department of State Growth have now closed. Other free support can be found on their website.
As customers approach the end of their six-month loan repayment deferral period, banks are implementing phase two of their COVID-19 support. Find out more about the options available to you at the Australian Banking Association website.
98% of all businesses (including not-for-profits) with a loan from an Australian bank are eligible for help.
If you can pay in full
, then you’ll be required to start repaying your loan at the end of your deferral period.
If you can partially pay
but are in ongoing financial difficulty, you may have your loan restructured or varied to allow you to return to paying off your loan. If you can’t restructure, you may be eligible for an extra deferral period of up to four months.
During this four month extension, you will be expected to work with your bank to find the best solution to return to repayments. This four-month extension will not be automatic, it will only be provided to those that banks believe will genuinely benefit from extra time.
If you cannot make repayments
either during or at the end of any deferral, you will be assisted through your bank’s financial hardship process to determine your best long-term solution.
Banks will communicate with you in a clear and timely manner, act with honesty and integrity and treat you in a fair and ethical manner.
The Coronavirus SME Guarantee Scheme will guarantee 50 per cent of new loans issued by eligible lenders to SMEs. The guarantee will apply to eligible unsecured loans of up to $250,000 per borrower (plus interest) and will apply to both principal and interest.
Loans must be approved by 30 September 2020 in order to be covered by the guarantee.
The Government will provide eligible lenders with a guarantee for loans with the following terms:
To apply for the scheme, contact James Russell, Kelly+Partners Finance Director to discuss the options available to you at james.russell@kellypartnersfinance.com.au.
The Government announced a Mandatory Code of Conduct for commercial leases in April 2020 to support businesses affected by COVID-19. The Code of Conduct outlines a set of good faith leasing principles for commercial tenancies including retail, office and industrial between owners, operators, other landlords and tenants.
The code applies to tenants that have an annual turnover of up to $50 million, and are eligible for the JobKeeper Payment.
The key points for business owners:
Under the code, landlords will not be able to:
The Code and its principles will be implemented and regulated by your relevant state or territory.
The policy will include a mutual obligation requirement on the small and medium-sized businesses and not-for-profit tenants to continue to engage their employees through the JobKeeper Payment where eligible, and if applicable, provide rent relief to their subtenants.
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