Have you been hearing about the range of government stimulus measures and wandering what’s in it for me?
We get it, it’s so important to know your options; but it’s also really overwhelming with so much information out there.
With a sharp focus on compliance and accuracy, we always go straight to the source, and so we jumped onto the ATO website to gather the information and links contractors need.
Job Keeper
First, we paid a visit to the JobKeeper payment page, which the ATO states is “open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight”.
An eligible employer is one that has experienced a significant decrease (at least 30%) in revenue over the past month owing to the economic and community changes that have been implemented because of COVID-19.
If you are working for an eligible employer, you can then find out if you are an eligible employee by going through the dot point list on the Eligible Employee page on the ATO website.
For contractors, it’s important to note that your employer is generally your payroll provider. At Bookssorted, we continue to remain steady at this time, meaning we are not an eligible employer for the JobKeeper initiative. If you are a contractor and your income has been negatively impacted by COVID-19, chat with us about the options you may have, including to maximise your pay through this time to support you and your family.
It’s important to note that JobKeeper payments are provided to employers, who then pay this amount to eligible employees. JobKeeper payments are a fixed amount of $1,500 per fortnight for each eligible employee, and the ATO reimburses the employer for the payment (meaning the employer first pays the employee and the ATO pays the employer in arrears).
The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.
Early release of superannuation
To help ease the financial burden faced by many right now, the ATO has announced that eligible individuals will be able to apply to access up to $20,000 of their superannuation in 2020 ($10,000 before 1 July 2020 and a further $10,000 from 1 July 2020 until 24 September 2020).
Individuals who do so will not pay tax on the amounts they access and the money they withdraw will not be taken into account under any income or means tests.
Eligible temporary residents will also be able to apply to access up to $10,000 of their super before 1 July 2020.
To be eligible, you must satisfy a specific criterion, which includes being unemployed, having your working hours reduced by 20 per cent, or being made redundant after 1 January this year.
For sole traders, the criteria includes having your business suspended or turnover reduced by 20% or more. The specific criteria are available on the Early Access to Super page of the ATO website.
This measure is supporting people impacted financially by the COVID-19 crisis. It is important to assess if the measure is right for you. Financial advisers have recently commented on how taking $10,000 from your super now can impact your super balance significantly in the long-term. It’s important to gain advice to understand what’s right for you.
Think early release of super is a good option for you? You can register now through your MyGov account. See details on the ATO website.
JobSeeker
We’re devastated that so many people have lost their jobs through this uncertain time. To support people, we were pleased to see the Government act quickly to fast-track JobSeeker payments to those in need.
Eligible individuals can receive $1,115.70 per fortnight.
Service Australia’s Payment and Service Finder is a good online tool to help you see what payments and services you may be eligible for.
Still confused?
If you’re a contractor, we’re happy to chat. Call us or reply email, and we can chat through your unique circumstance.
The ATO and Services Australia are also happy to help and can be contacted via phone and web—see the ATO contact us page and the Services Australia contact us page for details.
Stay safe and well, and thank you for being part of our community!
The Bookssorted Team
Note: this information is general in nature and does not take into account your unique situation.