Loading Replay Replay video Play video Play video The flat $1500-a-fortnight rate means about 1.7 million part-time and casual workers will get a pay rise, putting pressures on businesses to cover their inflated wage bill so they can access JobKeeper. Loading FCGC Gymnastics, a community gym for people of all ages and abilities in Melbourne, is struggling to find enough money to cover its JobKeeper wage bill. About half of its staff normally earn less than $500 a fortnight. Now those workers, many of whom are 16-year-olds teaching one junior gymnastics class a week, will be entitled to $1500. "One of them is my son, he's a great kid, but I'm a little uncomfortable with him getting $18,000 for six months," the gym's operations manager Tammy Robinson said. "$18,000 for a 16-year-old is a lot of money."

The requirement to pay a flat $1500 has almost doubled FCGC's wage bill to about $60,000 a fortnight at a time when the not-for-profit gym isn't taking in any money because of social distancing rules. Ms Robinson is negotiating with banks for a loan — on which the gym will have to pay interest — to cover its up front JobKeeper payments but is desperately worried about what will happen if she cannot secure one. "That's the scary thought. That's what we don't want to think about," she said. As JobKeeper has to be paid to most workers each fortnight but the Tax Office only repays employers monthly, the gym will have to find $120,000. In August, when the dates align so that there are three "JobKeeper fortnights" in the one month it will need to find an additional $60,000.

When the tax office pays an employer for the past month they will have to use that money to start paying for the month ahead. "You're filling one hole with the dirt from another," one payroll industry source said. The issue has been generating concern within the government backbench as many businesses have complained their banks are backlogged processing loan applications. There have also been complaints about restrictions to the scheme including on partnerships and trusts. Nine hundred thousand firms expressed interest in JobKeeper after it was announced. So far, 275,000 have submitted formal applications, of which half are sole traders. Treasurer Josh Frydenberg on Thursday revealed special hotlines will be created so businesses seeking JobKeeper support can get help from their banks. Credit:Alex Ellinghausen Treasurer Josh Frydenberg said the requirement of businesses to cover wages up-front was an integrity feature of the JobKeeper system.

On Thursday he announced the major banks would set up hotlines businesses can call to have their loan applications expedited so they can pay JobKeeper up front. Loading "Go to your bank, ring their hotline, ask for that support and the support will be forthcoming," Mr Frydenberg said. The government has told banks to process applications faster and help customers in need. Prime Minister Scott Morrison said he was concerned about the difficulties facing businesses accessing the cash required to cover their wage bills.