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JobKeeper 2.0 passes Senate

3 September 2020

The next tranche of JobKeeper legislation has been passed by parliament and we are set for another six months of wage subsidies for businesses affected by the COVID-19 pandemic.

Dubbed JobKeeper 2.0 the updated scheme will take effect after 28 September 2020 and will have a few key changes for employers seeking to access the flexibilities with directions to staff:

  1. Workersthe current JobKeeper rate of $1500 a fortnight to drop to $1200 a fortnight from September and to $1000 a fortnight from January,
  2. the eligibility criteria of 30% fall in turnover (for an aggregated turnover of $1 billion or less) will become an ongoing monthly test, changed from an ‘at time’ test.
  3. introduces a lower payment introduced for employees who worked less than 20 hours a week before the pandemic,
  4. “legacy employers” who are no longer eligible for JobKeeper but can demonstrate their turnover has declined by 10% or more in relevant quarters this year compared to last year will continue access to some labour flexibilities,
  5. “legacy employers” will not be able to give JobKeeper-enabling directions that reduce an employee’s hours of work below 60% of their ordinary hours of work (as at 1 March 2020), or to require an employee to work less than two hours on a day they work,
  6. “Legacy employers” must also give employees seven days’ written notice before a JobKeeper-enabling direction is issued, up from the previous notice period of three days. Including new requirements to allow union representatives to assist with consultations,
  7. The current flexibilities for eligible employers to issue enabling directions to eligible employees, including to stand them down, perform other duties, change location of work, take annual leave and reduce their hours to as little as zero will remain for those business who continue to qualify for JobKeeper 2.0,
  8. The tests by which a JobKeeper enabling direction may be given have also been tightened; stating that employer directions which reduce hours for a category of employees may be unreasonable if they have an unfair effect on some of those employees compared to other employees who are subject to those directions.

Employers will be required to hold a “10% decline in turnover” certificate, issued by an independent financial services provider, or to self-certify if they are a small business employer with fewer than 15 employees. They define an eligible financial service provider as a registered tax agent, BAS agent or a qualified accountant.

The Fair Work Commission will still have the power to deal with disputes about JobKeeper directions and agreements, while the ATO is responsible for the overall scheme including eligibility, and the Fair Work Ombudsman can ensure minimum wages and conditions under the Fair Work Act are met and the misuse of JobKeeper enabling directions by employers.

 


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Disclaimer: The information above is of a general nature only and does not consider your individual circumstances. MEA does not provide financial or tax advice. Always consult with your accountant.

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