JobKeeper payments extended
The Australian Government has extended JobKeeper Payment for another six months with changes being made from 28th September 2020.
Businesses that can demonstrate a 30% or more decrease in turnover could be eligible for the following wage subsidies:
- From 28 September 2020: $1200 a fortnight for full-time employees and $750 for part-time employees (<20 hours per fortnight).
- From 4 January to 28 March 2021: $1000 a fortnight for full-time employees and $650 for part-time employees. (<20 hours per fortnight).
COVID-19 bank loans extended
An extension of the Coronavirus SME Guarantee Scheme has just been announced, allowing small and medium-sized businesses to access funding throughout the COVID-19 period.
The second phase of the Scheme will start on 1 October 2020 and will be available until 30 June 2021.
Key changes to the scheme include:
- extending the purpose of loans able to be provided beyond working capital, allowing a wider range of investment to be funded
- permitting secured lending (excluding commercial or residential property)
- increasing the maximum loan size to $1 million (from $250,000) per borrower
- increasing the maximum loan term to five years (from three)
- allowing lenders the discretion to offer a repayment holiday period
The Scheme has seen more than 15,600 businesses accept loans worth $1.5 billion.
National skills investment
Prime Minister Scott Morrison announced the latest COVID-19 economic recovery plan, JobTrainer, which aims to assist 340,700 job seekers into new training places.
JobTrainer is designed to upskill or reskill people who have lost employment from the effects of COVID-19, and support school leavers who may struggle to gain employment during the ongoing pandemic.
JobTrainer funding also includes an extension of the 50% wage subsidy for employers of an apprentice or trainee.
Small and medium-sized businesses (199 employees or less) will now be eligible for the subsidy, for wages paid from 1 July 2020 – 21 March 2021.