- Some businesses may be having trouble funding the minimum A$1500 (before tax) fortnightly wage for eligible employees under the JobKeeper scheme
- The major banks will fast-track any outstanding applications from businesses seeking funding to help them pay staff until the JobKeeper is paid by the ATO in May
- A dedicated hotline will be set up by each major bank to service businesses needing the finance
Australia's major banks will fast-track any outstanding applications from businesses seeking funding to pay staff until the JobKeeper is paid by the ATO in May.
This comes as some businesses have complained that they can't access the funds to pay the minimum A$1500 (before tax) fortnightly wage that needs to be paid to eligible employees by 30 April 2020 to access the JobKeeper scheme.
This is particularly acute in industries that usually employ people for less than A$1500 a fortnight, such as retail, restaurants, fitness and take away food industries. As a result, some businesses have decided that it is too hard to participate in JobKeeper.
The Treasurer, Josh Frydenberg, had a telephone hook-up with the CEOs of ANZ, NAB, Westpac, the Commonwealth Bank and the Commissioner of Taxation on 23 April to discuss the need for the banks to provide bridging finance to those businesses.
The CEO of the banks agreed to bolster their efforts to prioritise any business needing funding to bridge the gap until the first JobKeeper payments are made by the ATO in May.
A dedicated hotline will be setup by each major bank to help service the businesses seeking funding.
CA ANZ had previously raised this issue with financing with the ATO and the Australian Small Business and Family Enterprises Ombudsman (ASBFEO). The ATO and ASBFEO are trying to address the issue by:
- Issuing JobKeeper registration receipts that can be provided to financial institutions to assist with credit applications
- Extending the small business funding guarantee to fintech credit providers so that there is more competition in the credit market.