Keepers, Seekers and Golden Snitches

COVID-19 continues to wreak havoc on the economy and health systems worldwide. Governments are splashing billions of dollars in an attempt to save lives and industries. The Australian Government has recently announced changes to the JobSeeker Allowance (unfortunately nicknamed the 'bludger' allowance) and introduced the JobKeeper Allowance.

But which one is right for you?

JobKeeper Allowance

The JobKeeper Allowance aims to keep employees engaged with their employers so that the economy hits the ground running when COVID-19 passes. The scheme grants eligible businesses $1,500 per fortnight per employee to help pay wages for the next 6 months.

Eligible businesses

1. Turnover reduced by more than 30% (or greater if turnover was greater than $1B).
2. Registered for the scheme via the ATO.

Eligible employees

1. On the books since 1 March 2020 and continue to be employed full-time, part-time or casual (if longer than 12 months), recently stood-down employees, or self-employed individuals who meet the business eligibility.
2. Aged 16 or over, are Australian residents (or hold certain visas).
3. Not receive the JobSeeker Allowance or JobKeeper Allowance from any other employer.

If all boxes are ticked, payments to employers commence in May 2020 and staff who ordinarily received less than $1500 per fortnight will receive the full subsidy. Those who ordinarily earn greater than $1,500 per fortnight will continue to receive their regular income and the payments subsidise part of their wage.

JobSeeker Allowance

If you are ineligible for the JobSeeker Allowance and find yourself out of work, you may be eligible for the JobSeeker Allowance, if you are aged between 22 and pension age and meet the residency and income/asset limits.

The fortnightly payment was recently increased by $550 per fortnight for the next 6 months, taking the maximum base rate to $1,115.70.

Beaters Beware

The above and other changes to the welfare system are being rolled out with reduced verification and approval measures. This is to get financial support to those who truly need it most as fast as possible. However, those who try to 'beat' the system - beware! Members of the public are always 'snitching' on fraudsters and government checks and balances will be carried out in due course. Those who defraud the Commonwealth will be reported to the Ministry of Magic and face serious criminal consequences.

If you need legal advice following the financial impacts of COVID-19, please contact Connolly Suthers.