Institute of Certified Bookkeepers

PLEASE

Advise businesses that JobKeeper is not law yet.

We dont know exactly what it will look like despite the updates from Treasury over the weekend.  There are a lot of different views that have to be onside for this to be succesful through parliament.

Timing for payments by busiiness

Law may be finalised this week!

It will only be then that any certainty about receiving payments from Government will be known.

First payment to employees is supposed to be for the fortnight ending 12th April ie after we know about law.  So there is some benefit in that we dont need to pay employees until we know that the system is law and it will happen!

First receipt from Government will be after 1st May, so there is a cash gap.

Cash Gap

Current expectation is the employer is to pay the worker before you receive the Govt payment.

Paid after the 12th April, not received until the 1st May.  a 20 day gap in funds!

Government is aware of the issue.....but

How to fund

Banks are beiing told to provide the Government Supported SME Borrowing Facility (up ot $250k) on the back of a business being entitled to receive the JobKeeper Payment.  (We are aware than many bank representatives are still saying there has been no change in the lending criteria).

State based Business Grants (NSW & Vic have $10k schemes).

There is some mention in recent Treasury documents that allow back pay for JobKeeper eligible employees - but we MUST await the legislation and more detail.

 

 

  • 6th April 2020
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