Job Keeper Payment Legislation Passed
The Government’s $130 billion Job Keeper Payment scheme was passed with the support of both sides of Parliament last night. The wage subsidy package has been budgeted for a period of six months and is expected to assist around 6 million workers.
Under the scheme, eligible businesses can receive a $1,500 per fortnight wage subsidy for each eligible employee. These payments must be passed on to staff.
Payments will commence from 1 May 2020 and will be backdated to 30 March 2020 when the scheme was first announced. Businesses must notify the Australian Taxation Office (in an approved form yet to be released) by 26 April 2020 if they wish to start applying the scheme from 30 March 2020.
While the scheme was passed with no changes from the original announcements, further information is yet to be released on the mechanism for reporting and payment. It will be up to the Treasurer and the Australian Taxation Office to work out these details and provide clarity in the coming days.
We will endeavour to provide this crucial information as soon as it comes to hand. In the meantime, we recommend that businesses who believe they will be eligible for the scheme register their interest through this link on the ATO’s website – https://www.ato.gov.au/general/gen/JobKeeper-payment/
New Mandatory Code of Conduct for Commercial Tenancy Arrangements
Following a National Cabinet meeting on Wednesday, the Prime Minister outlined a mandatory Code of Conduct for Landlords and Tenants to abide by in relation to leasing of commercial properties.
This Code of Conduct will apply to small and medium enterprises with a turnover of < $50 million and calls for both parties to work together to negotiate appropriate temporary leasing arrangements during the COVID-19 period and sets out some basic leasing principles to be adhered to on both sides.
Below is link to the Code of Conduct that has been released:
Update on Cash Flow Boost for Employers & March 2020 BAS
The Australian Taxation Office (ATO) is currently updating their internal systems to be able to deliver the Cash Flow Boost for Employers from 28 April 2020.
The timing of the March 2020 BAS lodgement may impact whether the Cash Flow Boost will be applied against existing tax debts or be delivered as a credit or cash refund.
Per the ATO’s advice, do not lodge the March 2020 BAS before the relevant due date.
For further assistance, please contact your Cooper Reeves Advisor.