Following a Treasury review and community pressure, the Australian Government has since announced changes to the JobKeeper scheme.

The Job Keeper Scheme will extend until 28 March 2021.

From 28 September, payments will be made in two tiers based on the number of hours that employees worked before the pandemic.

Payment  Changes

The current flat rate payment of $1,500 per  fortnight will be replaced with a tiered system of reduction.

For eligible employees who worked 20 hours or more per week before 1 March 2020, payments will be reduced to $1,200 per fortnight from 28 September, and then drop again to $1,000 per fortnight from 4 January 2021.

For those eligible employees who worked less than 20 hours a week before 1 March 2020, payments will be reduced to $750 a fortnight from 28 September and then $650 a fortnight from 4 January until 28 March 2021.

Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees.

Eligibility – Turnover Test

The extension also means employers will need to reapply the turnover test at certain stages:

28 September 2020 – 3 January 2021: Turnover test is to be performed April to June 2020 quarter; and July to Sept 2020 quarter

4 January 2021 to 28 March 2021: Turnover test is to be performed in addition to above; and October to December 2020 quarter.

Check here for further information and on the ATO website.

Temporary Changes to Fair Work Act 2009 (the Act)

Temporary changes have been made to the Act for a six-month period ending on 28 September 2020.

The changes include temporary amendments to the Act which allow eligible employers under the JobKeeper scheme, to pay employees the minimum $1,500 a fortnight JobKeeper payment without breaching awards, enterprise agreements or a contract of employment. There is greater flexibility for employers to change employees’ hours, duties, days and location with the Fair Work Commission given the power to hear and arbitrate any disputes.

At this stage, the Act JobKeeper provisions are still scheduled to end on 28 September 2020. When this happens, any directions or agreements made under them will also end. Employees’ terms and conditions will revert back to what they were without the directions or agreements in place.

Blue Wren HR will keep you informed of any extensions to these temporary arrangements or further changes to the Act, if they arise.

We are in this together!