There’s a slight catch to the $1500 payment for businesses
MONEY is on the way for businesses who have been affected by the coronavirus crisis - but you will have to be patient.
Prime Minister Scott Morrison yesterday announced the government would provide $1500 a fortnight per employee to businesses.
This is for full and part time and casuals who have been with their employer for 12 months.
The government will pay the money to employers who will then pay it to staff to keep them employed.
Employers will receive the money in the first week of May and it will be backdated to March 30.
A Tweed accountant welcomed the payment in support of sole traders and business owners.
However, he acknowledged the month-long wait would be tough.
Jared Humes from Fusion Accounting Solutions said that to be eligible for the payment, businesses would have to prove a 30 per cent downturn compared to last year.
He said staff who were stood down after February 29 onwards would be eligible for the payment.
Mr Humes said if the employee earned more than $1500 a fortnight before tax, the employer would have to top up the payment to the original salary before tax.
He said at this stage employers needed to register their interest on the Australian Taxation Office website and wait for further instruction.
He encouraged staff, employers or sole traders to contact their accountant if they would struggle to make ends meet until payments started.
"We might be able to develop strategies to maximise stimulus packages from earlier announcements," Mr Humes said.
"There's other options such as deferring ATO debt and talking to your bank that has your loan to help ease the cash flow burden.
"People who are renting, contact your landlord or real estate agent and negotiate your terms."
He said the finer details of the Jobkeeper package were yet to be released and advised those who are affected to be patient.
Learn more about the Jobseeker Payment here, treasury.gov.au/sites/default/files/2020-03/Fact_sheet_supporting_businesses_4.pdf