Small businesses have been granted an extension until 8 May to make their first payment of the JobKeeper program to employees.
The Australian Small Business and Family Ombudsman, Kate Carnell, has welcomed the decision to extend the deadline from 30 April as a move that will help the many small businesses struggling with cashflow.
“Small businesses now have extra time to deal with cashflow pressures as a result of any delays with their financial arrangements,” Carnell said. “It’s especially critical now that those small businesses that had chosen not to apply for JobKeeper because they were worried they couldn’t pay their staff by 30 April, do so now.”
The ASBFEO noted that the big four banks have established dedicated JobKeeper helplines to help ensure funding small businesses need to pay their staff and have also promised to fast-track such applications, and that some FinTechs have also released products to help address the cashflow problems of small businesses.
On the subject of rent pressure, Carnell said, “For those small businesses struggling to pay their rent, remember you are only covered by the Mandatory Commercial Tenancy Code of Conduct if you are eligible for JobKeeper, so this could be essential to your business’s survival.”
Businesses have until 31 May 2020 to formally enrol so they can claim JobKeeper payments. However, the ATO will process the JobKeeper payments as soon as an employer pays their staff for April and files the enrolment.
