Yes. And you must do this to be eligible. Employers need to pay their employees a minimum of $1500 per fortnight (before tax) from 30 March 2020 or they will cease to qualify for the JobKeeper payment. There is no way around this.

As a result, cashflow in April is a big concern for businesses until the Jobkeeper payments commence in May.

The Government is providing temporary cash flow support of up to $100,000 for eligible small and medium-sized businesses, and not-for-profits (NFPs) that employ staff to help with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff. This will be done through two sets of cash flow boosts, with the first delivered from 28 April 2020, through credits in the activity statement system. Eligible businesses do not need to apply with a separate form.

For a more detailed look at what is available, and the eligibility criteria please click here

There are also safety net measures in place for businesses in financial distress.

  • A temporary increase in the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive;
  • A temporary increase in the threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond to a bankruptcy notice, and extending the period of protection a debtor receives after making a declaration of intention to present a debtor’s petition;
  • Temporary relief for directors from any personal liability for trading while insolvent; and
  • Providing temporary flexibility in the Corporations Act 2001 to provide targeted relief for companies from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.

More information can be found here

To help you navigate the new legislation and how it applies to you, Taxpro Australia has appointed a dedicated accountant to answer your enquiries. You can contact Bruno direct by calling him on 0414 800 171 or email: bruno@taxproaustralia.com.au.