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FormulaNova said..
Inflation generally happens when there is an increase in demand for a good or service that has limited supply.

(Bravo and all, but...) Inflation can occur when too much money is pumped into the system. Specifically, when it is pumped in as cheap credit.
It's also a neat way to get out of debt.

Oddly enough "they" have been pumping in ludicrous amounts of money the last 10 years, and yet there hasn't been much inflation. Government bonds are negative. Central bank rates are negative. And yet inflation has been below the target 2-3%.

Why? What does this mean going forward?

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stoff said..
Just because your kids qualify for it, doesn't mean they will actually receive it. Entirely up to the employer.

First off the employer has to register the employee for jobkeeper, there is no rule saying they have to. For casuals they might just say "sorry no more work, your out"

Second they need to have paid the employee $750 a week for the month of April. For most casuals this means the employer will have to top up pays by a lot before they get anything back. I'm sure many who are already light on cash may baulk at the thought of throwing out more for a teenage casual who may not even come back.

Before all that your buisness has to prove it' qualifies
My buisnesses have to find $48000 to pay out before we get anything back,may I add we have f##k all in the bank , we've been dealing with the huge amount of head fu##ery that we fall under
They certainly didn't think the basics out prior to passing this flawed system of assistance

On the contrary cauncy, it's to sort the goats from the sheep and not throw good money after bad. So first up if your business has employee withholdings you get a discount/credit/rebate via your BAS after the 28th of April. If your business is economically viable and has cash flows from production that can keep you alive till after the first week in May then you get a payment per employee to keep employees. This is not welfare mate, it is a stimulus package for viable businesses and was never intended to be used to keep unviable businesses afloat. But yeah, the head f#$k is trying to keep up with the rules that seem to be changing daily as we get closer to the payment becoming reality.

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petermac33 said..
Try and buy silver at the moment FN. There is a huge demand for it but the price is stable. Tip - its kept artificially low.

Running out of gold bullion now. Many sizes out of stock.
Has this happened before? The next dunny roll?

Plenty of long serving casuals on 300$ a week now entitled to 700$ a week plus ... meanwhile 1 million plus tax paying guest workers left to starve ... a well thought out LIEberal policy ...!

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Paddles B'mere said..
On the contrary cauncy, it's to sort the goats from the sheep and not throw good money after bad. So first up if your business has employee withholdings you get a discount/credit/rebate via your BAS after the 28th of April. If your business is economically viable and has cash flows from production that can keep you alive till after the first week in May then you get a payment per employee to keep employees. This is not welfare mate, it is a stimulus package for viable businesses and was never intended to be used to keep unviable businesses afloat. But yeah, the head f#$k is trying to keep up with the rules that seem to be changing daily as we get closer to the payment becoming reality.

The rules are changing and 6 months is going to be over before anyone actually gets the stimulus.

I cant remember which pollie said it but the job keeper/seeker was provide a cushion for a change in living/lifestyle standards. I think this could actually the be the cruel truth.

while the intention is good the execution is flawed , struggling business owners are now instructed to get bridging loans to pay workers before jobkeeper kicks in ...more dept at this stage is not a good idea .!

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AndyShwartz said..The rules are changing and 6 months is going to be over before anyone actually gets the stimulus.

Curious what you mean, my kids already have it in their bank account.

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evlPanda said..

FormulaNova said..
Inflation generally happens when there is an increase in demand for a good or service that has limited supply.

(Bravo and all, but...) Inflation can occur when too much money is pumped into the system. Specifically, when it is pumped in as cheap credit.
It's also a neat way to get out of debt.

Oddly enough "they" have been pumping in ludicrous amounts of money the last 10 years, and yet there hasn't been much inflation. Government bonds are negative. Central bank rates are negative. And yet inflation has been below the target 2-3%.

Why? What does this mean going forward?

There's been loads of inflation! Just not of what's in the basket that defines the consumer price index. House prices, share prices... lots of inflation.

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Harrow said..

AndyShwartz said..The rules are changing and 6 months is going to be over before anyone actually gets the stimulus.

Curious what you mean, my kids already have it in their bank account.

No they don't Harrow, their employer will be carrying the wage expense out of their own cash flows until they (their employer) gets the first payment at the end of the first week in May. Some employers may need to pay a reduced weekly pay and then backpay the employee to make up the difference. We must remember JobKeeper is not a welfare package aimed at employees, it is a business stimulus package aimed to keep viable businesses going. The welfare package aimed at employees who find themselves out of work is JobSeeker and that is the "backstop".

How this scheme is going to help single owner businesses?
I have tenant, so far very profitable single operated engineering business but suddenly out of work.
So can not pay rent and outgoings on units rented.
My income is derived from tenants like that.
So who is going to help here?
If there is anything to help single person business powers that suddenly lost income ( not the employer - but themselves ) ?
I t could be as much as 1 mln single-person businesses in Australia that face that corona crisis.

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Cambodge said..

evlPanda said..

FormulaNova said..
Inflation generally happens when there is an increase in demand for a good or service that has limited supply.

(Bravo and all, but...) Inflation can occur when too much money is pumped into the system. Specifically, when it is pumped in as cheap credit.
It's also a neat way to get out of debt.

Oddly enough "they" have been pumping in ludicrous amounts of money the last 10 years, and yet there hasn't been much inflation. Government bonds are negative. Central bank rates are negative. And yet inflation has been below the target 2-3%.

Why? What does this mean going forward?

There's been loads of inflation! Just not of what's in the basket that defines the consumer price index. House prices, share prices... lots of inflation.

Good one...and look at wages stagnating. I was better off 12 years ago. I feel for anyone who has a mortgage, its gonna be tough.

Also shrinkflation, bottles of beer are smaller and blocks of chocolate. Houses are made cheaply so more maintenance etc etc

We are in for a massive correction and everybody thinks we are going to be stimulated out of this...I hope we are.

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Harrow said..

AndyShwartz said..The rules are changing and 6 months is going to be over before anyone actually gets the stimulus.

Curious what you mean, my kids already have it in their bank account.

Interestingly my partner lost her position working 36 hours a week. Now down to 14 hours a week in a different role. No job keeper (employers not interested) or seeker as she likes working. She is on employments benefits or something. Gets $350 total even though she works.

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Macroscien said..
How this scheme is going to help single owner businesses?
I have tenant, so far very profitable single operated engineering business but suddenly out of work.
So can not pay rent and outgoings on units rented.
My income is derived from tenants like that.
So who is going to help here?
If there is anything to help single person business powers that suddenly lost income ( not the employer - but themselves ) ?
I t could be as much as 1 mln single-person businesses in Australia that face that corona crisis.

The smart ones would have put someone on the books for the last week of March and picked up 10k from the tax withheld refund. That's what I got my Parents to do, paid out a couple of days ago.

@Macro, JobKeeper is available to anyone with an ABN that meets the qualification criteria so that includes sole traders.

That's interesting that you've already got your BAS credit stoff, it wasn't supposed to be until the 28th.

Andy you're right this is a correction that was always going to happen that got accelerated by a pandemic. Some people will be worse off simply because their previous lifestyle was not financially sustainable. There will be plenty of opportunity on the other side of it but it hopefully won't be the same as it was ................ because it was simply unsustainable.

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stoff said..

Macroscien said..
How this scheme is going to help single owner businesses?
I have tenant, so far very profitable single operated engineering business but suddenly out of work.
So can not pay rent and outgoings on units rented.
My income is derived from tenants like that.
So who is going to help here?
If there is anything to help single person business powers that suddenly lost income ( not the employer - but themselves ) ?
I t could be as much as 1 mln single-person businesses in Australia that face that corona crisis.

The smart ones would have put someone on the books for the last week of March and picked up 10k from the tax withheld refund. That's what I got my Parents to do, paid out a couple of days ago.

You do know that you needed to be on the books as at the 1st of March (before Cashboost was announced) and it's trivial for the ATO to check that this was the case through the single touch payroll system? Also trivial to check that payroll has been amended too.

If your parent's business got $10k for the cash boost then it means their 3 month payroll was lower than that figure and even if they only had 1 employee they would have got $10k. Furthermore, any of that $10k that is over and above their PAYG withheld isn't free cash, it will applied as a credit down the track so you've used up credit that they could have applied to a genuine employee.

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Paddles B'mere said..

That's interesting that you've already got your BAS credit stoff, it wasn't supposed to be until the 28th.

$10k was applied against my companies Jan - Mar BAS as soon as it was lodged through the business portal

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Paddles B'mere said..
On the contrary cauncy, it's to sort the goats from the sheep and not throw good money after bad. So first up if your business has employee withholdings you get a discount/credit/rebate via your BAS after the 28th of April. If your business is economically viable and has cash flows from production that can keep you alive till after the first week in May then you get a payment per employee to keep employees. This is not welfare mate, it is a stimulus package for viable businesses and was never intended to be used to keep unviable businesses afloat. But yeah, the head f#$k is trying to keep up with the rules that seem to be changing daily as we get closer to the payment becoming reality.

Here's one I'm struggling with
2 girls employed since 13 now 16/17 still at school
Can only work 16 hrs max at wknds, they qualify, but
Have to work the hrs at wageline rates of pay, to the sum of $1500 per fortnight job keeper, they carnt do it

@cauncy, if your business and employees are eligible, and the employees wish to access JobKeeper; you will have to make sure you pay the two girls $1,500 gross per fortnight each starting from the 1st of April and the government will reimburse you the amount after the end of the first week in May. You will have to carry it for that period. Can you simply backpay them? ie process payroll at the full $1.5k per fortnight rate but only pay them their normal rate for the 16 hours per week that they actually work till you get the first payment from the government and then "fix up" payroll by backpaying them .............. this would have to be with their consent

my daughter earns $100 per fortnight from one of her employers (childrens party venue), employer requested to seek jobkeeper for her employment. Do you think employer will pay the $1500 per fortnight to her or just keep it? Is that possible?

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Poida said..
my daughter earns $100 per fortnight from one of her employers (childrens party venue), employer requested to seek jobkeeper for her employment. Do you think employer will pay the $1500 per fortnight to her or just keep it? Is that possible?

Not only do they have to pay it, she should already be getting the extra cash for this month.

The application for jobseeker may not have been approved yet.

I have a friend who works for a rather dodgy employer. Its been around 3 weeks since the employer applied for jobseeker but still no final word of approval according to the employer.

My friend went to Centrelink a fortnight ago and applied for jobseeker allowance as he has no income. His job is being kept open for him.

How long does it take for a jobseeker application to be approved?

@Poida, if your daughter is eligible and the employer has registered then she should already be receiving the $1,500 per fortnight.

I'm not even certain whether anyone's "application" has been approved yet Pete and that's the big risk for an employer, but I'm sure if they've done their numbers and know that they are eligible, and the employee is eligible, it will all be good. Your friend should be able to get JobSeeker until he is re-instated by his employer and gets JobKeeper. I dunno for sure what the waiting period is for JobSeeker, but I thought it had been waived due to this financial crisis.

How does it work for a sole trader with no employees.Do they have to pay themselves (ie switch money between accounts if they have it)then make a claim each month to the ATO

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Poida said..
my daughter earns $100 per fortnight from one of her employers (childrens party venue), employer requested to seek jobkeeper for her employment. Do you think employer will pay the $1500 per fortnight to her or just keep it? Is that possible?

I have one daughter getting it now, the other is going to get it as back pay because the business can't carry the cost for a month. She's not complaining when she knows others aren't going to get it at all. The employer isn't allowed to keep it.

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Harrow said..

Poida said..
my daughter earns $100 per fortnight from one of her employers (childrens party venue), employer requested to seek jobkeeper for her employment. Do you think employer will pay the $1500 per fortnight to her or just keep it? Is that possible?

I have one daughter getting it now, the other is going to get it as back pay because the business can't carry the cost for a month. She's not complaining when she knows others aren't going to get it at all. The employer isn't allowed to keep it.

How many hrs per week is she working, is it to the value of the $1500 , as I've been advised they have to work the hrs to the value ,

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cauncy said..
How many hrs per week is she working, is it to the value of the $1500 , as I've been advised they have to work the hrs to the value ,

Not sure exactly, but not enough to earn $1500. How can what you were told be possible when the conditions of JobKeeper are that even people that used to earn less than the $1500 get the full $1500? Given that the business has to have experienced a down turn, then what you've been told doesn't make sense. You'd end up with a whole lot of workers sitting around with nothing to do.

Jobkeeper is a bit of a dog's breakfast. This article explains some of the problems.
www.michaelwest.com.au/jobreaper-flaws-in-jobkeeper-scheme-leave-businesses-and-workers-high-and-dry/

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cauncy said..

Harrow said..

Poida said..
my daughter earns $100 per fortnight from one of her employers (childrens party venue), employer requested to seek jobkeeper for her employment. Do you think employer will pay the $1500 per fortnight to her or just keep it? Is that possible?

I have one daughter getting it now, the other is going to get it as back pay because the business can't carry the cost for a month. She's not complaining when she knows others aren't going to get it at all. The employer isn't allowed to keep it.

How many hrs per week is she working, is it to the value of the $1500 , as I've been advised they have to work the hrs to the value ,

Asking them to 'Work hours to the value of the $1500' is not correct, they have amended the fair work act to reflect this. However, an employer can ask an employee to work additional hours for 'reasonable' reasons. If they were previously working 15hrs a week and now are asked to work the equivalent of $1500/ their hourly rate in hours (I'd assume heaps more) fair work would consider that unreasonable.

See here: coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/flexibility-in-workplace-laws-during-coronavirus/jobkeeper-changes-to-the-fair-work-act

TLDR: Their employer is taking the p@&*

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Harrow said..

cauncy said..
How many hrs per week is she working, is it to the value of the $1500 , as I've been advised they have to work the hrs to the value ,

Not sure exactly, but not enough to earn $1500. How can what you were told be possible when the conditions of JobKeeper are that even people that used to earn less than the $1500 get the full $1500? Given that the business has to have experienced a down turn, then what you've been told doesn't make sense. You'd end up with a whole lot of workers sitting around with nothing to do.

So they'd sit at home and do nothing for $1500 , doesn't make sence