JobKeeper 2.0: New payments structure confirmed with continued flexibility expected to follow


JobKeeper 2.0: New payments structure confirmed with continued flexibility expected to follow

After much speculation, the Federal government announced the extension of the JobKeeper payment scheme, JobKeeper 2.0, on 21 July 2020, to assist businesses to recover following the impacts of the COVID-19 pandemic.

The scheme will commence on 28 September 2020 when the existing scheme ends, and continue until 28 March 2021.

New JobKeeper payment arrangements

JobKeeper 2.0 continues to assist businesses in their financial recovery, but their eligibility will need to be reassessed and the payments will be scaled back and organised into two tiers for full time and part time employees.

Businesses and not-for-profits will need to demonstrate that they have met the relevant continuing decline in turnover test in the June and September quarters to access payments after 28 September 2020. Eligibility will be reviewed again in early January 2021 for the period to 28 March 2021.

The JobKeeper Payment rate will be gradually reduced and paid in two tiers, depending on an employee’s hours worked:

28 September 2020 – 3 January 2021

More than 20 hours / week: $1,200 per fortnight for eligible employees who worked for 20 hours or more a week in the four weeks before 1 March 2020

Less than 20 hours / week:  $750 per fortnight for eligible employees who worked for 20 hours or less a week in the four weeks before 1 March 2020

4 January 2021 to 28 March 2021

More than 20 hours / week: $1,000 per fortnight for eligible employees who worked for 20 hours or more a week in the four weeks before 1 March 2020

Less than 20 hours / week: $600 per fortnight for eligible employees who worked for 20 hours or less a week in the four weeks before 1 March 2020

What about JobKeeper enabling directions?

Equally important to the JobKeeper scheme is the enabling directions which give employers a level of workplace flexibility designed to keep employees attached to their businesses.
Since April 2020, employers have been lawfully permitted to make changes to the working conditions of their employees which would not otherwise have been allowed, including reducing working hours, assigning alternative duties, allowing work to be performed from home, and reaching agreement about taking annual leave. Information about the current JobKeeper enabling directions can be found here.

As the law stands, these flexible directions are scheduled to cease on 28 September 2020, in line with the first phase of JobKeeper.

Whilst the Federal Government’s latest announcement concentrated on the amended JobKeeper payments, it is inevitable that this workplace flexibility will also be extended until March 2021 with similar changes to the enabling laws and the Prime Minister has said as much in recent press interviews. There may yet be some changes introduced or negotiated in Parliament, which we will report on as events unfold.

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