JobKeeper payment bridging finance

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.