WORKPLACE RELATIONS
JOBKEEPER AND APPRENTICE WAGES INCENTIVE EXTENSIONS JobKeeper Extension The Federal Government has announced that the JobKeeper scheme will continue until 28 March 2021 with amendments to the current scheme to take effect from 28 September 2020. The existing JobKeeper scheme will continue until 27 September 2020 where each eligible employee receives $1,500 gross per fortnight. From 28 September 2020, the JobKeeper extension scheme will continue over two periods (the first period from 28 September 2020 to 3 January 2021 and the second period from 4 January 2021 to 28 March 2021) and on a tiered system based on the average number of hours that each employee worked prior to 1 March 2020.
Business Eligibility
The current JobKeeper system requires businesses to provide a one-off turnover test of a 30% reduction (or 50% reduction, if aggregated turnover is more than $1 billion) in GST turnover. The two extension periods of the JobKeeper scheme will no longer have a reference to the ‘projected GST turnover’. Instead, the eligibility test will depend solely on whether the actual GST turnover in those quarters has fallen by the required percentage compared to the same quarters in 2019. This means: • For the first period from 28 September 2020 to 3 January 2021, businesses will need to demonstrate that their actual GST turnover has fallen by the required 30% in both quarters ending 30 June 2020 and ending 30 September 2020; and
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• For the second period from 4 January 2021 to 28 March 2021, businesses need to demonstrate fall in GST turnover in each quarter ending 30 June, 30 September and 31 December 2020.
JobKeeper Payments
The JobKeeper extension payments will gradually reduce over the two extension periods and the amount of JobKeeper payment will depend on the number of hours the employee worked either before 1 March 2020 or 1 July 2020.
The amended JobKeeper payments are as follows: First JobKeeper Second JobKeeper Extension Extension 28/9/2020 –03/01/2021 04/01/2021 –28/03/2021 Tier 1 Employees • Eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020; and $1,200 gross per fortnight • Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
$1,000 gross per fortnight
Tier 2 Employees This rate is expected to apply to: $750 gross • any other eligible employees and per fortnight eligible business participants that are not considered Tier 1.
$650 gross per fortnight
The wage condition will continue to apply so employers will need to ensure they are paying the correct amount to employees and the payments from the ATO to the business will continue in arrears.
Apprentices and Trainees Wage Subsidy Extended The Australian Government has further announced that the apprentice and trainee wage subsidy of 50% of an eligible apprentice or trainee’s wages will be expanded to include medium-sized businesses who had an apprentice in place on 1 July 2020 and that the scheme will be extended until 31 March 2021. A small business may be eligible if: • The business employs fewer than 20 people; or • The business has fewer than 20 people but is using a Group Training Organisation; and • The apprentice or trainee was undertaking an Australian apprenticeship with the business on 1 July 2020. Claims prior to 1 July 2020, will continue to be based on the 1 March 2020 eligibility date. A medium-sized business may be eligible if: • The business employs fewer than 200 people; or • The business has fewer than 200 people but is using a Group Training Organisation; and • The apprentice or trainee was undertaking an Australian apprenticeship with the business on 1 July 2020. Any employer (including all small, medium, or large businesses and Group Training Organisations) who re-engages an apprentice or trainee displaced from an eligible small or medium business may also be eligible for the subsidy. The extension of these subsidies is a welcome relief for businesses. Please note: These details were correct at time of printing, and they may be subject to change. If you have further queries, please contact our workplace relations team on 07 3273 0800. Article written by Emma Ross, HR Advisor, MPAQ
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| MASTER PLUMBER MAGAZINE Spring 2020
