JobKeeper 2.0 and   Business Resilience Package

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BUSINESS RESILIENCE PACKAGE

The Victorian Government has announced the Business Resilience Package to provide direct financial support to businesses impacted by restrictions in Victoria and designed to assist Victorian businesses to prepare for ‘COVID normal’.

Business Support Fund grants (third round) are available from the program and range from $10,000 to $20,000 depending on the business’ annual payroll.

Eligible applicants must:

  • operate a business within Victoria;
  • participate in the JobKeeper Payment scheme;
  • employ people and be registered with WorkSafe;
  • have an annual payroll of less than $10m within the 2019-20 financial year;
  • Be registered for GST;
  • hold and ABN;
  • be registered with the responible Federal and State regulator.

Applications for the third round open 18 September 2020. To apply please visit the Business Victoria website here.

The below businesses may also be eligible for assistance under the new package:

  • Licensed Hospitality Business ($251 million): Grants of up to $30,000 for licensed pubs, clubs, hotels, bars, restaurants and reception centres, based on their venue capacity and location.
  • Business Chambers and Trader Groups ($3 million): A competitive grants program to  support metropolitan and regional business chambers and trader groups.
  • Alpine businesses ($4.3 million): Grants of up to $20,000 to help alpine businesses pay a service charge to Alpine Resort Management Boards.
  • Sole Trader Support Fund ($100 million): Grants of up to $3,000 to over 30,000 eligible sole traders who operate from a commercial premises or location to which the sole operator is the tenant or licensee.

The package also provides additional funding, tools and resources to help businesses adapt and prepare for reopening under COVID normal settings.

  • $20 million voucher program to assist sole traders and small businesses in building their digital capability
  • $15.7 million package to help Victorian exporters get their products to market and establish new trade channels.
  • $8.5 million expansion to the ‘Click for Vic’ campaign to encourage more Victorians to support local businesses.
  • $87.5 million Outdoor Eating and Entertainment Package to support     hospitality businesses prepare for COVID Normal reopening across Victoria.
  • $100 million Melbourne City Recovery Fund between the Victorian Government and the City of Melbourne to support Melbourne on the roadmap for reopening to COVID Normal in the lead up to Christmas and during summer.

The Government is also providing $1.8 billion in tax and cashflow support.

  • $1.7 billion to defer payroll tax for businesses with payrolls up to $10 million for the full 2020-21 financial year
  • $41 million to bring forward the 50% stamp duty discount for commercial and industrial property for all of Regional Victoria
  • $33 million to defer the planned increase in the landfill levy for six months
  • $30 million to waive 25% of the Congestion Levy this year, with the outstanding balance deferred.
  • $27 million in liquor license fee waivers for 2021
  • $6 million to waive Vacant Residential Land Tax for vacancies in 2020.

For more information on the Business Resilience Package please click here.

JOBKEEPER 2.0 UPDATE

Legislation for JobKeeper 2.0 was registered on Tuesday which include the new two-tiered payment rates. Businesses will be required to satisfy the new 'actual decline in turnover test’. Demonstrating a decline in turnover of 30% relative to its comparable quarter in 2019.

First Extension

Running from 28 September 2020 to 3 January 2021, employees who worked for 80 hours or more in the 28 day period prior to 1 March 2020 to 1 July 2020 will receive $1,200 per fortnight, all other employees will receive $750.

To qualify for the first extension businesses will need to satisfy the actual decline in turnover test for the quarter ending 30 September 2020.

Second Extension

Running from 4 January 2021 to 28 March 2021 the rate will drop to $1,000 per fortnight and $650 per fortnight respectively.

To qualify for the second extension businesses will need to satisfy the actual decline in turnover test for the quarter ending 31 December 2020.

Entities are allowed to qualify for the JobKeeper extension periods if they satisfy the actual decline in turnover test, even if they did not previously qualify.

For any questions please contact info@bwaadvisors.com.au

JobKeeper Payment - Information for Employers and Employees Today the Federal Government opens applications for the much anticipated Jobkeeper Payment. The subsidy will operate as a reimbursement to employers of $1500 per fortnight for wages paid to...

JobKeeper Payment - Information for Employers and Employees

Today the Federal Government opens applications for the much anticipated Jobkeeper Payment. The subsidy will operate as a reimbursement to employers of $1500 per fortnight for wages paid to their employees between 30th March 2020 and 27th September 2020. Jobkeeper payments to employers will commence from the first week of May, and will be paid monthly in arrears.

Eligibility for the Jobkeeper Payment first starts at the employer level. The key criteria are as follows :

  • the business has a turnover of less than $1 billion and its turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
  • the business has a turnover of $1 billion or more and its turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month);
  • the business is a registered charity and its turnover will be reduced by more than 15 per cent relative to a comparable period a year ago (of at least a month); and
  • the business is not subject to the Major Bank Levy.

As an Employer, what do I need to do?

You must self-assess your eligibility with respect to your fall in turnover.

To work out your fall in turnover, you can compare either :

  • GST turnover for March 2020 with GST turnover for March 2019
  • Forecast GST turnover for April 2020 with GST turnover for April 2019
  • Forecast  GST turnover for the quarter starting April 2020 and ending 30th June 2020 with GST turnover for the quarter starting April 2019 and ending 30th June 2019

You only need to satisfy the fall in turnover requirement once. You are not required to re-test over the course of receiving the Jobkeeper Payment.

If you do not qualify based on these measures, for example if your business has not been operating for one year, then you may apply to the Commissioner of Taxation to use discretion under alternative measures.

If you qualify under the fall in turnover test, you then need to assess who your eligible employees are. Your employees are eligible if they are :

  • Employed by you (including those stood down or re-hired)
  • Permanent full-time or part-time employees as at 1st March 2020
  • Long-Term casual employee (employed on a regular basis for at least 12 months) as at 1st March 2020 and not a permanent employee of another employer
  • At least 16 years old as at 1st March 2020
  • Australian resident as at 1st March 2020
  • Agree to be nominating by you. Please see ATO Employee Nomination Form

Business owners who are actively engaged in their business can also qualify for the Jobkeeper payment. This is limited to one entitlement per entity, even if there are multiple business owners. For companies, that means one shareholder/director. For trusts, one adult beneficiary. For partnerships, only one partner.

If you are eligible then you must register your intent to apply for the Jobkeeper Payment via the ATO Website or the ATO Business Portal. Alternatively, BWA can assist you in assessing your eligibility and registration. If you would like our assistance, please use the link below.

For more information on the Jobkeeper Payment for Employers please visit the

ATO Website or read the Treasury Factsheet.

I am an eligible Employee, what do I need to do?

If your employer is eligible and intends to register for the Jobkeeper Payment they will need to notify you. The payment will come directly from your employer, who is then later reimbursed by the ATO. Tax will be withheld from the $1500 subsidy.

If you meet the eligibility criteria speak to your employer, notifying them you would like to receive the payment using the official form. If you have multiple jobs you are only able to choose one employer, notify your other employers that you have nominated a different employer to make this claim.

For more information on the Jobkeeper Payment for Employees please visit the ATO Website or read the Treasury Factsheet.


Changes to the Fair Work Act


There have been temporary changes made to the Fair Work Act which allow for employers eligible for the JobKeeper payments to impose liabilities on working arrangements. The areas these apply to include, standing down employees, work duties, location of work, days worked and paid annual leave. For a more information on these changes please visit the Fair Work website here.

For any questions please contact info@bwaadvisors.com.au

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