With the current JobKeeper scheme due to end on 27 September, the government has introduced a two-tiered, scaled-down predecessor for employers that remain eligible, removing the adverse incentives created by the original scheme.

 

While the JobKeeper review did find that the scheme was pretty well targeted, going mostly to business that experienced an average decline in turnover in April of 37 percent against the same month a year previous, there was also evidence of its stunting labour mobility and keeping non-viable business alive.

 

As such, under JobKeeper 2.0 the eligibility criteria have been significantly tweaked, with businesses required to prove they suffered an actual decline in turnover in previous quarters – June and September – before qualifying. Subsequently, to keep receiving JobKeeper into 2021, on 4 January businesses will need to reconfirm their turnover shortfall for each of the June, September and December 2020 quarters.

 

The government has also made notable changed to the JobKeeper payment rate, scrapping its previous flat-rate approach and introducing a two-tiered system.

• SME loan scheme extended beyond September: The government has announced an extension of the Coronavirus SME Guarantee Scheme to support small-and-medium sized businesses by increasing their access to funding to enable them to adapt and innovate during the Coronavirus crisis. Under the existing scheme, some 15,600 businesses have accepted loans worth $1.5 billion. However, given initial predictions that the scheme will deliver $40 billion to SMEs, the government has now decided to extend and expand the scheme to get more money into SME pockets.

• The need of payment times legislation: Once enacted, the Payment Times Reporting Bill 2020 and Payment Times Reporting (Consequential Amendments) Bill 2020 will go a long way towards easing the load on small businesses that are struggling with cash flow issues, according to the Institute of Public Accountants (IPA). The IPA believes that this legislation will bring greater transparency by requiring businesses with over a $100 million turnover to publish their policies including payment times.

• 90,000 SMEs to benefit from new subsidy: The government has announced a $2 billion JobTrainer skills program, giving 340,000 Australians the opportunity to retrain or upskill into sectors with job opportunities, including an additional $1.5 billion to expand the apprentice and trainee wage subsidy. The Minister for Employment, Skills, Small & Family Business explained that the new JobTrainer initiative will offer Aussies access to short courses and full qualifications to prepare for post-pandemic workplace.

 

Source: IPA