The majority of the jobkeeper provisions of the Fair Work Act 2009 were repealed on 29 March 2021. The Fair Work Commission has limited power to deal with jobkeeper disputes on or after this date.
Attachment 5 sets out the jobkeeper provisions of the Fair Work Act that continue to apply on and after 29 March 2021.
The Fair Work Commission is Australia’s national workplace relations tribunal.
Australia has had a national workplace relations tribunal for more than a century and it is one of the country’s oldest key institutions. Over time it has undergone many changes in jurisdiction, name, functions and structure.
Throughout its history, the tribunal has made many decisions that have affected the lives of working Australians and their employers. The Commission recognises the importance of promoting public understanding of the role of the tribunal and of capturing and preserving its history for display and research.
The Commission is responsible for applying provisions of the Fair Work Act 2009 and the Fair Work (Registered Organisations) Act 2009. This includes powers to deal with some disputes about the jobkeeper payment scheme.
The Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (the Payments and Benefits Rules) are made under s.20 of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 (the Payments and Benefits Act). The Payments and Benefits Rules establish the jobkeeper payment scheme, including:
Payments under the jobkeeper payment scheme are currently available in fortnightly periods between 30 March 2020 and 28 March 2021.
On 21 July 2020, the government announced that it would extend the jobkeeper payment scheme from 28 September 2020 until 28 March 2021, and it amended the Payments and Benefits Rules to that effect on 15 September 2020.[1] There are two separate extension periods:
For each extension period, the rate of the jobkeeper payment is different.
For jobkeeper fortnights ending before 28 September 2020, the payment amount is $1,500.
From 28 September 2020, the rate of the jobkeeper payment will depend on the number of hours an eligible employee works. It will be split into two different payment rates:
The payment amount per fortnight is set out in the table below.
Jobkeeper fortnight | All eligible employees | Tier 1 rate | Tier 2 rate |
---|---|---|---|
Ending before 28 September 2020 |
$1,500 |
- |
- |
28 September 2020 to 3 January 2021 |
- |
$1,200 |
$750 |
4 January 2021 to 28 March 2021 |
- |
$1,000 | $650 |
A business must notify the Australian Taxation Office about whether the Tier 1 or Tier 2 rate applies to eligible employees.[2] A business must notify eligible employees in writing of which rate applies to them within 7 days of notifying the Australian Taxation Office.[3]
To be entitled to the jobkeeper payment, the business must pay the employee the full jobkeeper payment amount before it receives the jobkeeper payment from the Australian Taxation Office.[4]
The jobkeeper payment scheme ended on 29 March 2021.
Jobkeeper payments are administered by the Australian Taxation Office.
Commission staff cannot give advice on whether an employer is eligible for the jobkeeper scheme, and the following is provided for information only.
A business that has suffered a substantial decline in turnover can be entitled to a jobkeeper payment for each eligible employee. For all jobkeeper fortnights, the business must satisfy the original ‘decline in turnover’ test,[5] which is based on the business’s projected GST turnover. For jobkeeper fortnights from 28 September 2020, the business must also satisfy the ‘actual decline in turnover test’, which is based on current GST turnover.[6]
Different thresholds apply to the decline in turnover required, depending on the status of the entity, as follows:
Some employers are not entitled to receive jobkeeper payments.[7] These include:
The Commission cannot assist with disputes about whether an employer is eligible to receive a jobkeeper payment or whether an employee is an eligible employee for the purposes of the jobkeeper scheme.
An employer is not entitled, and is taken never to have been entitled to, a jobkeeper payment unless it complies with record keeping requirements under the Payments and Benefits Act.[8]
Employers can claim the jobkeeper payment for eligible employees.[9] Jobkeeper payments are administered by the Australian Taxation Office.
Commission staff cannot give advice on whether an employee is an ‘eligible employee’, and the following is provided for information only.
Eligible employees are employees who:[10]
[2] Payment and Benefits Rules, ss.6(1)(fa).
[3] Payment and Benefits Rules, ss.6(4A).
[4] Payment and Benefits Rules, ss.6(1)(d) and 10.
[5] Payments and Benefits Rules, ss.7(1)(b) and 8.
[6] Payments and Benefits Rules, ss.7(1)(c) and 8B
[7] Payments and Benefits Rules, s.7(2).
[8] Payments and Benefits Act, s.14(1).
[9] Payments and Benefits Rules, s.6.
[10] Payments and Benefits Rules, s.9.