Chamber applauds $130b wage subsidy plan for businesses
Under the plan, businesses will receive a fortnightly wage subsidy of $1500 per employee as part of the Government's plan to prevent millions of people from losing their jobs to the coronavirus pandemic.To qualify for the so-called JobKeeper payments, businesses will need to prove their turnover has dropped by at least 30 per cent.
Sole traders, self-employed people, partnerships and trusts will also be eligible. Business operators will have a legal obligation to ensure they pass the full wage subsidy onto employees, regardless of the employee's wage.This $1500 fortnightly payment represents about 70 per cent of Australia's median wage. For workers in the worst-hit accommodation, hospitality and retail sectors it will equate to the full replacement of the median wage. This is particularly important for the Gold Coast.
Gold Coast Central Chamber of Commerce president Martin Hall said the package would save thousands of jobs on the Gold Coast and help provide greater security for business owners."It is great to see the Federal Government has taken this brave step to combat the economic illness that is connected to fighting the spread of COVID-19 in Australia," said Mr Hall.
Employers with an annual turnover of less than $1 billion that have experienced a 30 per cent fall in revenue since March 1 will be eligible for the wage subsidy.The Jobkeeper payments will be available to full-time workers, part-time workers, sole traders and casual workers who have been with their employer for 12 months or more.
The payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.Where a business has stood down employees since 1 March, the payment will help them maintain connection with their employees.
Companies with an annual turnover above $1 billion will have to have a 50 per cent fall in revenue to be eligible for the scheme.