If your business is struggling right now, know you’re not alone. The Australian government has launched the JobKeeper program to help businesses and employers continue to pay their employees and stay in operation while cash flow is low or even obsolete.
JobKeeper Payments to pay employees
If your business has been negatively affected by the coronavirus pandemic, the government will pay each of your employees $1,500 every fortnight up until September 27, 2020.
There is a number of criteria your business will need to meet in order to be eligible for JobKeeper Payments, including a significant fall in turnover since the pandemic began.
JobKeeper Payments for sole traders
If you are a sole trader without any employees, you may also be eligible for JobKeeper Payments if your profits have been affected by coronavirus. To be eligible, you must:
– Not be currently receiving government parental or partner pay
– Not be an employee of another business or entity
– Have been actively engaged in business from March 1, 2020 and for the fortnight that you are claiming for the JobKeeper Payment.
There are also other minimum requirements you must meet in order to be eligible for these fortnightly payments of $1,500.
Cash flow help for small businesses
In addition to the above JobKeeper Payments, the ATO is offering support in the form of temporary cash flow boosts to small- to medium-sized businesses. Eligible businesses can receive up to $100,000 in credit, which can be used when activity statements are lodged.
The great thing about this cash flow boost is that you don’t need to apply. If you’re eligible, you will receive this tax-free payment via the activity statement system. The ATO will calculate exactly how much of a boost you’re eligible for and deliver them in either two or four installments.
If your business is currently suffering financial hardship, we can help you look at both federal and state government assistance programs to see your business through these trying times.