News

March 30 – 3rd Government Economic Stimulus Package – Wage Subsidy

Posted on March 30th, 2020 by WLF

Wages subsidy 

The government will subsidise wages for employees over the next 6 months with the aim to enable businesses to continue to operate during the crisis and start up again quickly once it is over.  

Currently details are slim and there are lots of unanswered questions. More information will be available once the legislation is drafted this week and after Parliament sits. 

We suggest you contact any employees that you may have stood down to let them know you are considering your eligibility for this payment.  
 

Job keeper payment: 

  • All eligible businesses will be paid $1,500 per employee per fortnight 

  • Available to businesses (and not-for-profits) whose turnover has fallen by 30% or more (unless turnover is $1 billion or greater – then 50% fall in turnover required) 

  • Available for full, part-time workers & sole traders as well as casual workers that have been employed for 12 months or more 

  • Employers will have a legal obligation to pass the payment on to the employee 

  • Employees do not need to have been stood down to be eligible for the payment 

  • For employees that were employed as at 1 March 2020 

  • Payments will be paid from first week of May and back dated to 30 March 

  • Excludes employees on temporary visas. However, does apply to New Zealanders on 444 visas 

  • Will be administered through the ATO and businesses must register with the ATO to receive the payment – registration is available now here. 

  • Employees normally paid less than $1,500 will be eligible for the full $1,500 

  • Superannuation guarantee will apply to employees’ wages as normal, however, where an employee’s normal earnings are less than $1,500 (before tax) the employer is not required to pay superannuation guarantee on the extra amount  

  • The payment is subject to PAYG withholding, meaning employees will receive $1,308 net of tax  

  • The payment is taxable in the employee’s hands and PAYG withholding will apply to the payments  

  • Employees solely relying on this payment will receive $1,308 

  • Legislation will be drafted this week and Parliament will be recalled to pass this legislation as soon as possible 

 

You can view the factsheet here 

 

Posted in COVID-19, News
Liability limited by a scheme approved under Professional Standards Legislation.

March 30 – 3rd Government Economic Stimulus Package – Wage Subsidy

time to read: about 1 min