There are a number of oddities about the JobKeeper system. Whilst designed to support businesses in stress retain their employees, it is a reimbursement system – it requires the employer to pay the employee first and then receive a reimbursement in the following month.
It particularly tough on those with a casual workforce where the average pay is under $1,500 per month. For a casual earning say $600pf, an employer must top it by $900 to $1,500 in order to qualify for a reimbursement. That is a very significant cash hit for a business that is already stressed! No wonder why so many businesses who registered interest haven’t enrolled into the system.
Following a fair amount of political pressure, the four major banks have been requested to provide bridging finance. They will not be giving money away; they will be assessing applications with a short term focus and presumably with some level of security.
As a side point, I have yet to hear of any business yet take out one of the government backed loans.
The four major banks (as well as the next tier of Westpac subsidiaries ) have set up dedicated JobKeeper support hotlines.
They can be contacted on the following numbers:-
CBA: 13 26 07
ANZ: 1800 571 123
NAB: 1800 JOBKEEPER
Westpac: 1300 731 073 and Westpac’s subsidiaries;
– St George: 1300 730 196
– Bank of Melbourne: 1300 784 873
– Bank SA: 1300 669 472
They will of course not consider a bridging application without:-
Confirmation of JobKeeper entitlement, and
At a minimum a detailed cash flow projection, but also expect to be asked for forecast Profit & Loss and Balance Sheet. That said, a business receiving JobKeeper will have to provide the ATO with projected turnover by the 7th day of every month.
At MRS, we will spend today planning for your success.