The Federal Treasurer has recently engaged with Australia’s four major banks who have now agreed to provide “bridging finance” to help businesses pay their employees before receiving the JobKeeper payment in arrears each month.
The four major banks have agreed to set up dedicated hotlines for their customers to call to receive the bridging finance necessary to pay their staff in advance of receiving the JobKeeper money under the JobKeeper program.
There has been much concern by businesses on their ability to continue paying their workers upfront, with little or no revenue coming in, before getting reimbursed by the ATO in arrears the following month.
These concerns have been further exacerbated by the “one in, all in” feature of the JobKeeper scheme, which requires businesses to nominate all eligible employees. Businesses have considered not enrolling for the scheme because of the cash-flow implications of funding wages upfront.
Whether the banks will stick to their promises of expediting these “bridging finance” applications remain to be seen. However, if your business is eligible for the JobKeeper program but paying all your eligible staff by 30th April is a significant cash flow issue, we would urge you to contact your bank’s hotline for immediate temporary financing.
Westpac – 1800 067 497
NAB – 1800 562 533
ANZ – 1800 413 950
CBA – 13 26 07