Update: JobKeeper 2.0 approved

As foreshadowed by our 26 August 2020 legal alert, the Government’s amendments to the JobKeeper Scheme have passed both Houses of Parliament, meaning the Scheme will be extended from 27 September 2020 until 28 March 2021.

Under the Coronavirus Economic Response Package (JobKeeper Payments) Amendment Bill 2020 (Bill), employers who previously had access to payments under the Scheme but who are no longer eligible, will still have access to certain flexibility measures if they can demonstrate a revenue reduction of 10% (which must be certified by an eligible financial service provider).

The Bill will also see the JobKeeper payments to eligible employees reduced as follows:

• 28 September 2020 to 3 January 2021:
  • $1,200 per fortnight for eligible employees employed for an average of 20 hours or more per week in the 4 weeks prior to 1 March 2020;
  • $750 per fortnight for eligible employees employed for an average of less than 20 hours per week in the 4 weeks prior to 1 March 2020.
• 4 January 2021 to 28 March 2021:
  • $1,000 per fortnight for eligible employees employed for an average of 20 hours or more per week in the 4 weeks prior to 1 March 2020;
  • $650 per fortnight for eligible employees employed for an average of less than 20 hours per week in the 4 weeks prior to 1 March 2020.

The Bill temporarily amending the Fair Work Act 2009 (Cth) is accessible here.

The Government has also released an Explanatory Memorandum and Supplementary Explanatory Memorandum with the Bill, providing further guidance as to the changes.

• Explanatory Memorandum
• Supplementary Explanatory Memorandum

EMA Legal can assist employers with any questions about the continuation of the JobKeeper Scheme.