Shakenovsky & Associates provides up to date advice on the ever-changing policies and procedures in relation to the employment issues arising from the COVID-19 Pandemic. Contacts us directly with any questions or concerns about your personal situation regarding Covid-19.

Advising on standing down of employees, reducing employees’ hours and termination of employment.

Advising on all employment issues arising out of the COVID-19 Pandemic affecting employers and employees.

If you have a question about workplace entitlements, we’re here to help you understand your rights and responsibilities at work during the coronavirus outbreak. 

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Employment Law

THIRD GOVERNMENT STIMULI & HELP PACKAGES – COVID-19

On Monday 30 March 2020 the Federal Government announced a third economic stimulus package of $130 billion to retain Australian employees of suffering businesses dealing with coronavirus, COVID-19. Also, on Sunday 29 March 2020 the New South Wales Government announced further Payroll Tax concessions.

UPDATED JOBKEEPER INFORMATION – Existing JobKeeper continues up until 27 September 2020

From the next day, a new, modified JobKeeper scheme applies until 28 March 2021. Under the new scheme, employers must reassess their eligibility with reference to actual turnover in the June and September quarters (2020) compared to the same period in 2019.

That is:

• from 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover in the June and September quarters 2020. They will need to demonstrate that they have met the relevant decline in turnover test in both of those quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
• from 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021
• Monthly lodgers will use the aggregate turnover for the three-monthly Activity Statements over these quarters and compare them to the above periods in 2019
• The existing decline in turnover rates must be met (i.e. 30% for businesses with a turnover of $1 billion or less, or 15% for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities)

Reduced payment rates will also apply for all eligible employees and business participants as follows:

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates:

• $1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
• $750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:

• $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
• $650 per fortnight for other eligible employees and business participants.

There has also been a change to the JobSeeker Coronavirus Supplement with it also being extended past September until the 31 December, with the amount falling from $550 to $250 a fortnight after 24 September.

Updated JobKeeper information has been provided by Saul Markunsky, Director for In The Picture and Shakenovsky & Associates’ accountant. 

CURRENT: FEDERAL GOVERNMENT NEW JOBKEEPER PAYMENT WAGE SUBSIDY

Under the new wage subsidy plan, eligible employers will receive a $1,500 per fortnight “job keeper payment” before tax for each eligible employee they keep employed to 30 September 2020. Self-employed workers are also eligible.

The following is the limited detail provided so far, legislation is to still to be prepared and passed by parliament.

TIMING

The JobKeeper Payment subsidy starts 30 March 2020 with the first payments to Eligible Employers in the first week of May 2020, backdated to the 30 March start date.

Subsequent subsidy payments will be paid to the employer monthly in arrears.

ELIGIBLE EMPLOYERS (EXCLUDING BANKS)

With a turnover of less than $1billion per annum and their turnover will be reduced by more than 30% in at least one month by 30 September 2020 compared to the same month of the prior year.

With a turnover of $1billion or more per annum and their turnover will be reduced by more than 50% in at least one month by 30 September 2020 compared to the same month of the prior year.

(As to exactly how the reduced turnover will need to be proven is unclear at this stage).

The employer must have employed the eligible employee as at 1 March 2020 and continue to employ in order to continue to receive the subsidy.

Not-for-profits (including charities), as well as self-employed individuals, are also eligible.

ELIGIBLE EMPLOYEES 

Are currently employed by the Eligible Employer (including those stood down or re-hired);

Were employed by the employer as of 1 March 2020;

Are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);

Are at least 16 years of age;

Are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and

Are not receiving a JobKeeper Payment from another employer

APPLICATION PROCESS

Initially, employers and self-employed can register their interest online here.

Subsequently, employers and self-employed will need to provide further details to the ATO through an online application (has not yet been released).

EMPLOYER OBLIGATIONS

Register an intention to apply as per above and assess that they have or will experience the required turnover decline.

Provide information to the ATO on all Eligible Employees as at 1 March 2020. The ATO will use Single Touch Payroll data to pre-populate the employee details for most businesses.

Pay each Eligible Employee a minimum of $1,500 per fortnight (before tax).

Notify all Eligible Employees that they are receiving the JobKeeper Payment.

Continue to provide information to the ATO on a monthly basis for all Eligible Employees.

Pay superannuation guarantee contributions based on payments to Eligible Employees.

NEW SOUTH WALES PAYROLL TAX CONCESSIONS

Additional concessions have been announced (further detailed information is still to be released):

Businesses with Grouped Australian Wages over $10 million for the 2019/20 financial year can choose to defer the payment of their payroll tax for up to 6 months, starting with the March month which would normally be due for payment by 7 April 2020.

Businesses with Grouped Australian Wages of $10 million or less for the 2019/20 financial year can choose to defer their July, August and September 2020 payroll tax payment by up to 3 months. Those business have already been granted a 25% reduction in payroll tax liabilities for the 2019/20 financial year.