COVID-19 JobKeeper Scheme Amendments from July 2020
By Paolo Coniglio, 06.06.2020
Amendments to the JobKeeper Payment Scheme
Treasurer Josh Frydenberg has announced his plan to make significant amendments to the JobKeeper Scheme starting from the 23 July 2020.
The Australian Government has started its review of the JobKeeper Payment Scheme. The Review is expected to be finalised by the end of this Financial Year and will focus on two main areas:
- The continued eligibility to the scheme of businesses from sectors no longer impacted by the COVID-19 pandemic;
- The viability of the flat $1,500 fortnightly payment to employees who normally earn less than this amount per fortnight.
We want to understand whether the quantum, that $1,500 payment, continues to be the right amount, also bearing in mind that some people are getting paid more than they would otherwise get by virtue of having a flat payment.
JobKeeper Payment Scheme revoked for the Childcare Industry
In a surprise announcement, Minister of Education Dan Tehan has decided to revoke JobKeeper Payments for workers employed in the Childcare Sector.
The Childcare Relief Payments are also set to cease as of the 12 July 2020 and the Child Care Subsidy system to resume on Monday 13 July 2020.
In place of the JobKeeper Scheme, the Australian Government will subsidise child care centres with a Transition Payment of 25% of their fee revenue during the relief package period (17 February to 1 March). The subsidies will be paid from 13 July until 27 September, with the last two payments scheduled for September made in advance to support the centres cash flow.
The Transition Payments apply important conditions on Child Care Centres including:
- Child care fees will be capped at the level of the reference period (17 February to 1 March);
- The Centres will need to guarantee employment levels to protect staff who will move off the JobKeeper Payment Scheme.
Finally, Child Care Community Fund (CCCF) Special Circumstances grants will also be available to support services experiencing viability issues. This support will be targeted at services in areas of limited supply, and ensure families in regional, rural, remote areas and areas of disadvantage continue to have access to care.
For more information refer to https://www.dese.gov.au/covid-19/childcare