The program will ultimately pay workers AU$1,500 every two weeks for the next six months. Companies, including nonprofits, with annual revenue of AU$1 billion are eligible if they estimate that their revenue has fallen by 30% or more. Larger entities that can show their revenue dropped by 50% can qualify as well.
The legislation, the most expensive in Australia's history, is expected to reach six million employees.
"As a nation, we are going through challenging times. We need to work together, to help businesses continue operating for the good of the Australian community and our economy," Deborah Jenkins, deputy commissioner for small business at the Australian Taxation Office, said during a video address Tuesday after the government announced the plan.
Companies will use the revenue they reported for the country's goods and services tax from the most recent filing period and the same period from a year earlier, according to a fact sheet released by the taxation office. The Australian tax commissioner will have discretion to include companies in special situations, such as those that experienced unusually high or low revenue in the previous year and those that only began operations recently.
The retention program, named JobsKeeper — a play on Jobs Seeker, a pre-existing unemployment insurance program — will supplement other assistance the government has passed or approved since the beginning of the pandemic. In March, Parliament approved a $50 billion package that aids taxpayers and allows them to access retirement funds early. The country has also allowed businesses to delay value-added tax payments and claim deductions for new investments more quickly.
The Australian Taxation Office did not immediately respond to a request for further comment.
Tax administrations around the world, including the U.S. Internal Revenue Service, are acting as the primary conduit for assistance as governments rush to get money into the hands of small-business owners and citizens in the hope of keeping their economies from collapsing. Under the $2 trillion CARES Act, the IRS will send most U.S. citizens up to $1,200, using the direct deposit system for those who've registered to receive tax refunds. The Organization for Economic Cooperation and Development issued guidance Tuesday for tax administrations looking to prioritize revenue collection and these new responsibilities as they maintain their own operations during the global outbreak of the virus, which causes the respiratory disease COVID-19.
--Editing by Vincent Sherry.
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