Join our

mailing list.

Keep up to date with our latest insights.

Perspective

JobKeeper 2.0: New rules and regulations

The Federal Government has introduced new amendments via Fair Work Amendment (JobKeeper Payments) Regulations 2020 and Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 8) 2020 to assist employers in transitioning to JobKeeper 2.0.

Read on for our recap of what’s new:

  • JobKeeper Stand Down Directions
  • 10% decline in turnover test
  • Actual decline in turnover test
  • Payment Thresholds

JobKeeper Stand Down Directions

As previously explained in our summary on the proposed JobKeeper changes, classes of employees in the Fair Work Regulations 2009 (Cth) will affect the JobKeeper enabled stand down directions that legacy employers can issue.

10% decline in turnover test

The Fair Work Regulations 2009 (Cth) have amended this test, so that businesses must calculate actual GST turnover – therefore it is based on actual sales and not projected sales.

Additionally, businesses are no longer able to choose whether to report income under an accrual basis or a cash basis, businesses will be obliged to report under whichever method is listed under their registration preference for business activity reporting.

Actual decline in turnover test

The new rules also introduce the actual decline in turnover test, requiring an actual rather than projected decline in turnover. Generally, any businesses that satisfy the actual decline will be able to meet the threshold for the projected turnover test.

The actual decline test undertakes assessments on JobKeeper fortnights rather than quarters.

  1. For JobKeeper fortnights that start on or after 28 September 2020 and end on or before 3 January 2021, test will be satisfied if the business’ actual GST turnover has fallen by the required decline in quarter ending on 30 September 2020.
  2. And for JobKeeper fortnights that start on or after 4 January 2021 and end on or before 28 March 2021, test will be satisfied if the business’ actual GST turnover has fallen by the required decline in quarter ending on 31 December 2020.

Payment thresholds

The rules have also provided further clarification on how to calculate how employees should be paid during JobKeeper 2.0.

During 28 September 2020 – 3 January 2021:

  • Full time workers (anyone who work over 20 hours per week) who are eligible will receive a subsidy of $1,200
  • Part time workers (anyone working 20 or less hours per week) who are eligible will receive $750.00

During 4 January 2021 – March 2021:

  • Full time workers (anyone who work over 20 hours per week) who are eligible will receive $1,000
  • Part time workers (anyone working 20 or less hours per week) who are eligible will receive $650.00

Employees will be entitled to the higher rate of pay provided that they have worked the 80 hour requirement over the 28 day reference period. The hours include hours worked, paid leave and authorised absences on a public holiday.

The reference period is calculation using the 28 day period ending at most recent pay cycle for the employee that ended before 1 March 2020 or 1 July 2020 (whichever is applicable).

Written by Nina Hoang

Have a question or need advice?

Our team are here to provide the right advice for your business and workforce. If you have a question or require assistance, please contact Andrew Douglas.

Stay updated with our Friday Workplace Briefing

Every Friday at 10:30am, join us online and to hear the critical news and developments that affect your workplace. We’ll keep it simple, pragmatic and to 30 minutes.

Share

Heightened levels of stress around the pandemic is also a relevant factor. An April 2020 study reported 88% of the participants (US employees) faced moderate to extreme stress during the pandemic and nearly 70% faced the most stressful time of their professional career.

Paul Evans

Managing Director, Toro Digital

Psychological hazards of e-working during the pandemic is a relevant factor. The Australian Psychological Society identified these hazards as conflicts between work and family, workload and over-working, future uncertainty and isolation/loneliness.

Heightened levels of stress around the pandemic is also a relevant factor. An April 2020 study reported 88% of the participants (US employees) faced moderate to extreme stress during the pandemic and nearly 70% faced the most stressful time of their professional career. Participants noted their productivity consequently declined by at least one hour a day for 62% and at least two hours for 32%.

Unsurprisingly, there has been a marked rise in mental health related prescriptions since March 2020.

These risks can be mitigated by undertaking appropriate risk analysis for each employee, ensuring controls are instituted that mitigate those risks, ensuring regular communication between management and employees around individual circumstances, setting clear expectations including around joint goals and objectives, scheduling regular informal team gatherings, and ensuring access to support and resources.

Share

KEY CONTACTS

Managing Principal and Director

Legal Solutions.

Found.

Anything we can help you with?

Fusce sed egestas massa. Praesent eu sem pulvinar, condimentum massa ut, finibus ante. Praesent congue magna quis lectus placerat, tincidunt pellentesque ex placerat. Quisque facilisis quam et augue rutrum, at laoreet purus bibendum.

Join our

mailing list.

Keep up to date with our latest insights.