Callaghan Motors dealer principal Steve Callaghan told his 62 workers this week that the business would open for four hours a day, close on weekends, and they would be divided into two teams that worked alternate weeks.

"It allows us to keep everyone employed and gives us certainty going forward, so we can get though this virus and come out the other side," Mr Callaghan said.

He now plans to apply for the federal government's job keeper payment of $1500 a fortnight, and intends to pay all staff that wage including himself, while continuing to pay sick, holiday and long-service leave.

"I am standing people down to 25 per cent, but rather than standing people down I'm doing the team approach," Mr Callaghan said.

"It is a socialist-type model but everyone is doing their bit."

He said the alternative was that his business would need to close.

"We want to keep open for our customers and it has to be workable," Mr Callaghan said.

The federal government announced its job seeker scheme on Monday with directions that eligible employers still operating who expected to see a downturn of at least 30 per cent must continue to pay their staff their regular income, but will receive the $1500 payment to subsidise each wage.

In examples the government provided to businesses it was unclear whether Mr Callaghan's plan was possible under the criteria. The Standard contacted the Australian Taxation Office for comment.

Mr Callaghan said splitting into two teams was to protect the health of the workers, and increased chances for the business to continue if a worker from one group was to be infected with COVID-19.

"You wouldn't wish this upon anyone, but everyone understands the situation, and I believe they are pretty happy with what we're trying to do," he said.

He said the business would likely make a loss in coming months regardless of the wage subsidies, but reducing working hours allowed it to remain sustainable.

"This is about making sure they all have jobs in the long-term," Mr Callaghan said.

Prime Minister Scott Morrison told reporters this week that federal parliament would have to resume for the $130 billion job keeper scheme to be legislated.

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