With the introduction of the Federal Government’s JobKeeper scheme, and subsequent updates from States and Territories, we’ve summarised what you need to know about the program, and how it may impact your insurance premiums.
Updates from States & Territories:
Employers utilising JobKeeper in Victoria will be exempt from:
- Payroll tax
- WorkCover premiums on payments to their employees if their staff are currently stood down.
Any eligible JobKeeper payments to meet the $1,500 threshold will not impact the calculation of WorkCover premiums.
JobKeeper payments made to workers who are not performing any duties will be excluded from the wages used to calculate premiums. If an employee is working at a reduced capacity and is in receipt of top-up payments made through the JobKeeper subsidy, only the wages earned for hours worked will be used in the calculation of premiums.
An employer may pay the JobKeeper subsidy to workers as a top-up payment or subsidy payment, but not as a payment for work done. Payments made for this purpose are not declarable wages. As such, employers should exclude any JobSeeker amounts paid to workers, as this is not a payment for work performed.
JobKeeper wage subsidy payments will not be considered remuneration for the calculation of premiums. Additional information concerning premium relief will be released by RTWSA at the end of FY20.
As the Job Keeper is a top-up or subsidy and not payment for work completed, wages declared should reflect the amount paid to workers for the period of work that has been done. Therefore, any top-up JobSeeker subsidy payments should not be declared as part of wage declarations.
WorkSafe Tasmania, Northern Territory & Australia Capital Territory
TAS, NT and the ACT are awaiting advice from Treasury to determine the impact on employer premiums. No information has been released at the time of writing (13 May); however, information will be updated here once this is announced.
WORKERS’ COMPENSATION PAYMENTS:
- Scenario 1: If an injured worker is certified unfit for employment, they will be paid their full workers compensation entitlement.
- Scenario 2: If an injured worker has partial working capacity and is receiving the JobKeeper subsidy as a top-up to their wages, only the wages earned for work completed would be declared for the purpose of premium calculation.
- Scenario 1: If an employee is stood down from their employment and is receiving the JobKeeper subsidy, this payment will not be considered as rateable remuneration for the purpose of premium calculation.
- Scenario 2: If an employee is working reduced hours and in receipt of top-up JobKeeper payments, only wages for the hours worked will be used for premium calculation.
- WorkCover VIC, NSW, QLD, SA and WA will not be considering the JobKeeper subsidy as rateable remuneration, and any wages paid as part of the JobKeeper subsidy should not be declared as rateable remuneration.
- Businesses who are under financial hardship may choose to adjust their initial remuneration estimate for 2019/20 now and seek a premium refund. Alternatively, businesses can await year end FY20, and use any premium return as credit towards their 2020/21 premium.
We’re with you all the way
As always, we’re committed to providing you with timely updates and support. For more information about COVID-19 related Government stimulus packages, legislative updates and business continuity, please head to the Honan News Hub or Honan LinkedIn.
For more on Workplace Risk, our team is only ever a call away. Please contact us to learn more about how we can help.
Sharon Rutherford – Head of Workplace Risk
m– 0499 799 558
Jules Paolino – Workplace Risk Consultant
m– 0499 799 464
Grace Rod – Workplace Risk Client Executive
t– +61 3 9947 4355