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.
- 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.
- 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.
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).