The Business Council of Co-operatives and Mutuals welcomes the release of further details from the Federal Government regarding the JobKeeper Payment.
BCCM was concerned to see that individual businesses that operate as part of a consolidated group for income tax purposes would be eligible for the payment. In order to effectively serve their members and the community, co-operatives and mutuals often use a consolidated model to provide different services to their members through individual business entities.
Information released on Sunday 5 April by the Government confirms that the test for businesses to show a decline in turnover will apply to each business in that consolidated group. This is a positive outcome from our recent advocacy and good news for some of the largest CMEs who will now be able to access JobKeeper to support staff in business entities hit hard by the coronavirus pandemic.
Some co-ops and mutuals are not-for-profit registered charities and they will be eligible to apply for JobKeeper with a 15% decline in revenue. All other not-for-profit and for-profit co-operatives and mutuals are subject to the 30% threshold under $1 billion and 50% over $1 billion, consistent with other businesses.
Australian co-operatives and mutuals welcome the Government’s JobKeeper stimulus package to mitigate the severity of the coronavirus pandemic on jobs, community welfare and the economy. Co-operatives and mutuals have a committed and productive workforce of over 88,000 direct employees and indirectly support the livelihoods of many more.
Co-operatives and mutuals are trusted brands that provide essential services for eight in every ten Australians.
BCCM looks forward to the passing of the JobKeeper legislation reflecting the above eligibility criteria.
Information about Government assistance and resources for Co-operatives and Mutuals are available via the links below: