JobKeeper ended on March 28: some background
The JobKeeper payment was introduced by the Australian government in March 2020 to assist businesses impacted by the Coronavirus pandemic.
JobKeeper provided a wage subsidy for employers so they could keep staff in their jobs when business income slowed or stopped completely. This was expected to enable a speedy restart for businesses, with a full complement of staff, when this crisis subsides.
For your employees, this meant they could retain their jobs and have an income.
The JobKeeper scheme had been extended a number of times, with varying wage subsidies but finally ended on 28 March 2021. This is causing redundancies across the country and is hitting hardest those businesses worst affected by the Coronavirus crisis.
How is business affected?
Government figures following the end of JobKeeper, haven’t been published yet, but major impacts on some organisations and their employees is anticipated.
In a speech last month, Treasury secretary Steven Kennedy said he expected the end of JobKeeper to result in the loss of many thousands of jobs.
He anticipated that a percentage of the 1.3 million people receiving JobKeeper, possibly as many as 100,00 people “would be working “zero or low hours” by the scheme’s end”.
Other economists expected job losses to be below this figure. However, most agreed that the withdrawal of government support and the continued slowdown in consumer spending would have an economic impact.
Sharing country-wide concerns, Fazila Farhad, director of the Liverpool Chamber of Commerce expected that many businesses would be tested by the end of the subsidy
“I think some businesses are really going to be cutting their staff to the ground in trying to sustain and survive”.
“There could be some closures and there could be definitely redundancies as well.”
Some businesses may be able to adapt by providing new services or products and remote working. It is too early for accurate statistics, but it is inevitable that some businesses are now having to lay off staff.
What can your business do now?
Centrelink’s website states that “We may be able to support your staff with income support payments if they’re facing retrenchment or redundancy”.
As an employer of up to 15 staff, you’ll need to complete the Employment Separation Certificate for each staff member. If you employ more than 15 staff, you must notify Services Australia in writing, using a supplied form.
Your business may be eligible for the JobMaker Hiring Credit Scheme which is aimed at creating new jobs. JobMaker will provide a wage subsidy for new employees aged between 16-25 years.
Need more help and advice?
Corporate Lifeline are experts at working with Australian companies who are in, or facing, financial distress. Our team has years of experience and we’ve rescued hundreds of businesses and helped many more through financial hardship.
Working together, restructuring your company could mean you become more efficient and profitable in the future. We have a number of potential solutions and provide you with guidance, advice and assistance to help turnaround your financial affairs.
We have friendly, experienced staff across Australia who are ready to help you. Contact us now to talk with one of our team.