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The Latest Business News from the Australian Government

As the Australian government has moved to a 3-Step Framework for a COVIDSafe Australia and to nationally reopen to a state of ‘COVID Normal’, wherever it is safe to do so, by December 2020, this Industry Hub will no longer be maintained. However the business tools and general information on the Hub will remain on this site until September 2021.

The BIC supports the Australian government’s CovidSafe App as an integral step to slow the spread of the Covid-19 pandemic. The health, wellbeing and economic value of our industry is paramount and the sooner we work together to stop the spread of Covid-19, the sooner restrictions will be lifted, and we can return to normality. To download the app click here.            

JobKeeper - extension to March 2021 and requirements for Qualifying and Legacy Employers

On Tuesday 1 September 2020, the Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020 passed the Federal Parliament. The Act extends the JobKeeper payment scheme and the temporary JobKeeper provisions of the Fair Work Act, until 28 March 2021, albeit in a revised form.

The Bill passed with a minor technical amendment from the Government. BIC has been regularly engaging with Government (and Opposition) to ensure our Industry is being represented and to advocate for the retention of as many flexibilities for employers and employees as possible.

The Act creates two broad categories of employers who can access particular flexibilities under the Fair Work Act in certain circumstances from 28 September 2020:

• Employers who are eligible for JobKeeper payments after 28 September 2020 (qualifying employers); and
• Employers who did receive one or more JobKeeper payments in the period prior to 28 September 2020, but no longer qualify for a payment after 28 September 2020 (legacy employers).

 

Qualifying Employers

• The Act extends the operation of the temporary JobKeeper provisions in Part 6-4C of the Fair Work Act until 28 March 2021 for those employers who remain eligible for JobKeeper 2.0.
• This means employers who qualify for JobKeeper 2.0 can continue to issue JobKeeper enabling directions to employees to work reduced hours or days, undertake alternative duties, or work at an alternative location, or request an employee to work different days/times to their ordinary hours.
• However, the flexibilities concerning annual leave will be repealed at the start of 28 September 2020 per the original repeal date. These include the ability for an employer to request an employee take accrued annual leave, and to agree with employees for double annual leave to be taken at half pay.
• If an employee was given a request under the JobKeeper provisions to take annual leave, the employee is not required to comply with the request to the extent that the request relates to taking paid annual leave beyond the end of 27 September 2020. Note this only applies to agreements about annual leave made under JobKeeper (section 789GJ) – any other annual leave arrangements an employee or employer have in place at this time can continue unaffected.

 

Legacy Employers

• Legacy employers who were entitled to a JobKeeper payment for an employee under JobKeeper 1.0 and who have a certificate issued by a financial services provider (or self-certified where the employer is a small business with less than 15 employees) stating they have experienced a 10% decline in turnover will have access to modified flexibility measures from 28 September 2020.
• Disputes can be brought before the FWC about whether an employer holds a 10% decline in turnover certificate for a relevant period, or whether the certificate was issued by an eligible financial service provider, but the FWC cannot otherwise consider the 10% decline in turnover test.
• Legacy employers can give employees who previously received a JobKeeper payment JobKeeper enabling directions in relation to duties and location of work and can request employees work different days and times of work (so long as the request does not require the employee to work less an 2 consecutive hours in a day).
• Legacy employers will also be able to give JobKeeper enabling stand down directions so long as an employee’s hours are reduced to no less than 60% of their ordinary hours of work (as at 1 March 2020) and an employee is not required to work less than two consecutive hours in a day (minimum engagement requirement).
• Legacy employers have slightly different notification and consultation obligation to qualifying employers. They must give employees seven days written notice before issuing a direction and have expanded consultation requirements which largely mimic the model consultation term in 2.09 of the Fair Work Regulations.

 

New Guides

As a member of the Australian Chamber of Commerce and Industry, the BIC has access to a number of ACCI materials to assist employers to ensure compliance to the Fair Work Act and JobKeeper scheme.

• Download the Legacy Employer, Fair Work Act Flexibilities Guide, Edition 1. This guide aims to assist legacy employers with utilising the modified Fair Work Act flexibilities from 28 September 2020, including by providing notification and consultation checklists and draft letters for each of the JobKeeper enabling directions available to legacy employers (duties, location, reduction in hours/days).
• ACCI has made available to BIC its comprehensive new JobKeeper 2.0 Employer Guide. The guide covers all aspects of the JobKeeper wage subsidy for qualifying employers including employer/employee eligibility, changes in payment rates, interaction with JobSeeker and the Fair Work Act flexibilities for both qualifying and legacy employers.

Other extensions and business incentives on offer from the Australian Government

Download the government's business incentives Fact Sheet.

Instant Asset Write-off (IAWO) Threshold

On 9 June 2020, the Government announced it would extend the $150,000 instant asset write-off by six months until 31 December 2020 to give eligible businesses additional time to invest. This extension has been legislated.

The higher IAWO threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write off multiple assets. The IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 January 2021.

Backing Business Investment (BBI)

The Australian Government is introducing a time limited 15 month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions.The incentive applies to eligible assets acquired and first used or installed by 30 June 2021. Businesses with aggregated turnover below $500 million are eligible.

July 2020 Guiding principles for safe Covid-19 operation of buses and coaches deregulated sector

The BIC has provided assistance to the Department of Infrastructure, Transport, Regional Development and Communications in the development of a set of principles for the safe Covid-19 operation of buses and coaches in the private (deregulated) sector. The Australian Government made available these guiding principles on July 9 2020. Download here.

 

Tourism Restart Taskforce

Australian Government Agencies, including Austrade, the National COVID Coordination Commission, Tourism Australia and Treasury have worked with the Tourism Restart Taskforce to develop the Tourism restart program launched on 4 July 2020. This plan spells out the basis for the supply-side actions required to capitalise on the demand created by Tourism Australia for visitation, both domestic and international. The Tourism Restart Plan can be viewed here.                 

Go to our dedicated Covid-19 page for the Long Distance, Tour, Charter and Express sector.