Summary

• The coronavirus pandemic has drastically affected the workflow and businesses around the world.
• The Morrison Government introduced two stimulus packages to support their citizens during one of the hardest crisis Australia had experienced in recent times.
• Businesses, not-for-profit organisations, and deductible gift recipients that fulfill certain requirements became eligible for the JobKeeper subsidy.
• Goods and services tax (GST) measure the turnover that businesses experienced because of the coronavirus.
• The maximum payment under the JobKeeper Payment is A$1,500, after being nominated by the business.
• Some companies have defrauded the JobKeeper system by making false claims or altering their formal books.
• Qantas has been sued for manipulating the JobKeeper Payment by not paying their employees a proper fortnightly amount.

After the devastating effect that coronavirus had on world economies, governments around the globe needed to find a solution to keep people in jobs. Australians have been luckier than most nations, as the Morrison Government introduced two stimulus packages – JobKeeper and JobSeeker. By implementing two packages, Australians got the financial support they desperately needed, as many people got redundant and lost their main source of income.

Not only did the people receive the payments, but also many businesses became eligible for the JobKeeper payment in order to keep themselves running and paying people at the same time. Those who got significantly affected by the impact of the coronavirus have been given a new chance after the Government decided to extend the JobKeeper support, until 28 March 2021.

Who is eligible for the JobKeeper support?

Apart from registered businesses, some not-for-profit organisations and deductible gift recipients (DGR) could enroll in the JobKeeper system. Enterprises needed to be hit by either 15, 30 or 50 percent in order to get the supplement, the percentage being different for different business categories.

Goods and services tax (GST) is the main calculation regarding the business turnover. Once the companies do a turnover test, businesses can see if they meet the criteria for the JobKeeper financial support.

Every entitled employee has the right to receive up to A$1,500 (before tax) per fortnight. In order to get the benefit, employers need to nominate and inform the employees about the JobKeeper substitute, and finally fill in the nomination for the staff.

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Fraudulent behavior

Most enterprises that applied for JobKeeper have been acting accordingly, except a few. Australian Taxation Office (ATO) has noticed some fraudulent behavior and that some firms have been using the opportunity to make more money than usual.

ATO is monitoring all the companies that made a claim to receive JobKeeper payments and taking necessary action in case the fraudulent behavior becomes visible.

Firms have been reported to not be paying their employees the full subsidy amount (A$1500 before tax) and have not filled in the nomination notice before making a claim.

What seems to be most alarming is that some businesses went too far to claim the subsidy for their alleged employees, for the people who were not even employed at their firm.

Did you read; Australia’s action ahead after Reporting Error in Enrolment for JobKeeper

There have also been altered business statements so the formal books could show more alleged damage done by COVID-19. These changes were done prior to the turnover test that every business needs to prepare.

When it comes to the changes to the turnover test, some companies managed to show a drastic drop in the turnover, followed by the drastic growth, shortly after.

Apart from businesses, some individuals also made false claims that stated them both as the business and the employee. There were also people who falsely claimed multiple JobKeeper entitlements for themselves or changed their shifts in order to make it appear that their hours were cut because of the pandemic.

Qantas affair

In the recent Australian economy affairs, the most famous airline Qantas has been accused of deliberately paying their employees less than the JobKeeper wage subsidy should be paid to them.

Allegations have been made that Qantas manipulated the system by not paying the adequate salary including- non payment for working on public holidays, weekends, or overtime work. If the overtime work was paid, the employees got it two weeks after they should have actually received the payment.

With the alleged claims mentioned-above, Qantas is thought to be getting away from paying their workers what they are worth of, because the airline has been struggling to make the ends meet as most of their flights got cancelled. Due to this reason, Qantas needed to find a new strategy so they could maintain low costs during these unprecedent times.

The Qantas CEO Alan Joyce has been asked to resign, as there were 2,500 job redundancies in the baggage and cleaning department. Prime Minister Scott Morrison has also been urged to pressurise Qantas into keeping their staff at work.

It is reported that JobKeeper stimulus gave A$515 million to Qantas and their employees, according to the statement from the airline. The money was used to pay the staff and to run domestic and international flights.

Do Read; Can Qantas Share Price Still Be a Market Darling in the Post-COVID-19 Era?

Extended subsidy

The government decided to extend the JobKeeper subsidy on the 21 July 2020. The payments will be extended by half a year, ending on 28 March 2021.

The new extended opportunity is meant to give hope to both businesses and their employees. In this way, enterprises that got drastically hit by the pandemic will be able to recover gradually, as well as financially support their staff.

As one of the most developed economies in the world, Australia could afford to aid its citizens in a proper manner, unlike other nations that did not have enough funds for everyone in need. A result of the recent lockdown in Victoria brought Australia to a more slippery ground, but JobKeeper is thought to help the Victorians during their strict novel measures.

New changes are in place every day and it is hard to predict when the lockdowns and restrictions will be completely lifted. Until then, it is safe to say that the people will be compensated for their lost shifts for a little longer period.

Also Read: The new JobKeeper might cause bankruptcies for businesses