Pitt welcomes JobKeeper stimulus
HINKLER MP Keith Pitt hopes the wage subsidy announced by the Federal Government this week to keep businesses open and people employed would keep businesses ticking along during the coronavirus pandemic.
Employers will be able to claim a fortnightly payment of $1500 before tax for up to six months for each of their eligible employees through the JobKeeper program.
“The Prime Minister has … announced a new JobKeeper program which will see an investment of $130 billion over six months for around 6 million Australian workers,” Mr Pitt said.
“This is about keeping people employed and businesses operating during this difficult situation we are currently in. Already we have seen local businesses adapting to continue trading and I hope this wage subsidy will make this easier.
“Through the JobKeeper program employers will be able to claim a fortnightly payment of $1,500 per eligible employee for a maximum of six months.
“It will apply to full time, part time and casuals who have been with the same employer for 12 months, as well as stood down employees.
“This is a significant investment to ensure that our economy keeps moving and people still have jobs to go to now and in the future.”
Most employees will receive a notification from their employer that they are receiving the payment and will not have to do anything further.
However, there will be additional obligations for employees who:
- Have multiple employers. The employee must notify their primary employer.
- Employees whom are not Australian citizens must notify their employer of their visa status to allow the employer to determine if they are eligible.
- Employees in receipt of an income support payment must notify Services Australia of their new income.
There are also conditions for employer eligibility.
Employers will be eligible for the subsidy if:
- Their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period of at least a month a year ago.
- Their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period of a month or more a year ago.
- The business is not subject to the Major Bank Levy.
The subsidy was also welcomed by Opposition leader Anthony Albanese.
“Business, unions and Labor have been calling for a real, guaranteed wage subsidy – one that keeps workers in their jobs,” Mr Albanese wrote on social media.
“Today the Government has said they’ll do just that. We’ll examine the detail, but this is a step in the right direction.
“We need to move quickly to support Australians.
“It’s been almost three weeks since the original economic package, but the money still hasn’t started flowing. We need to do better.
“We’ll work through any issues with the Government – because we want to help them to get this right.
“We’ll be constructive.
“We’ve already won important changes to improve our response to this crisis and protect vulnerable Australians.
“That’s the role we’ll continue to play.”
Businesses can register interest now via the ATO website at ato.gov.au/general/gen/JobKeeper-payment.