Sep 2020 2 Minutes
Jobkeeper 2.0 Legislation
The Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020 received Royal Assent on 3 September 2020. Apart from extending the end date of the JobKeeper scheme from 27 September 2020 to 28 March 2021, the bill contains amendments to the Fair Work Act 2009 which will have a significant impact on Employer clients.
Decline in Turnover Certificate
Under the current rules, an employer who is eligible for the JobKeeper subsidy is allowed to make certain JobKeeper enabling directions under the Fair Work Act, such as directions to reduce an employee’s hours, the type of duties to be performed and performing duties at a different location.
Employers who will be eligible for the extended JobKeeper scheme from 28 September 2020 will be able to continue providing JobKeeper enabling directions. However, employers who will not be eligible for the extended scheme, will only be allowed to continue with JobKeeper enabling directions if they can demonstrate a 10% decline in turnover.
The 10% decline in turnover test requires that for a JobKeeper enabling direction made between:
- 28 September 2020 – 27 October 2020, the employer must have suffered a 10% decline in GST turnover for the June 2020 quarter compared to the June 2019 quarter;
- 28 October 2020 – 27 February 2021, the employer must have suffered a 10% decline in GST turnover for the September 2020 quarter compared to the September 2019 quarter; and
- 28 February 2021 – 28 March 2021, the employer must have suffered a 10% decline in GST turnover for the December 2020 quarter compared to the December 2019 quarter.
Importantly, employers will need to obtain a 10% decline in turnover certificate from an eligible financial service provider, such as their tax agent or qualified accountant.
Accordingly, clients who do not expect to be eligible for JobKeeper payments after 27 September, but will need to continue JobKeeper enabling directions to their staff after 27 September 2020, should contact us to prepare the decline in turnover certificates.
If you have any queries on JobKeeper in general, please contact your accountant.