Wednesday, 30 September 2020

With so many NSW Northern Rivers businesses relying on the JobKeeper wage subsidies to retain staff in the face of loss of trade due to the COVID-19 pandemic the regional economy may decline further now Morrison's JobKeeper cuts start to kick in



The first federal government JobKeeper subsidised wage payments were received by employers in the first week of May 2020 and by 21 July 2020 est. 3.5 million Australians were receiving this payment.

By 22 July 2020 the percentage of NSW Northern Rivers Businesses relying on JobKeeper Payments by Local Government Area were:
Byron 60.39%
Tweed 47.79%
Ballina 39.56%
Clarence Valley 34.52%
Lismore 35.05%
Richmond Valley 27.45%
Kyogle 21.3%

In July the JobKeeper subsidised wage was $1,500 (before tax) per fortnight

The JobKeeper payment rate is now as follows…...


The JobKeeper Payment rate

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:
$1,200 per fortnight for all eligible employees who were working in the business or notfor-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
$750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
$1,000 per fortnight for all eligible employees who were working in the business or notfor-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and
$650 per fortnight for other eligible employees and business participants.

Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).

The Commissioner of Taxation will have discretion to set out alternative tests where an employee or business participant’s hours were not usual during the February and/or June 2020 reference period (the period with the higher number of hours worked is to be used for employees with 1 March 2020 eligibility). For example, this will include where the employee was on leave, volunteering during the bushfires, or not employed for all or part of February or June 2020.

Guidance will be provided by the ATO where the employee was paid in non-weekly or non-fortnightly pay periods and in other circumstances the general rules do not cover.

The JobKeeper Payment will continue to be made by the ATO to employers in arrears.

Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper Payment (before tax), based on the payment rate that applies to each employee. This is called the wage condition.


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