COVID-19 Stimulus measures

JobSaver extension: Pathway to recovery

Written by Robyn Jacobson, CTA, Senior Advocate, The Tax Institute

   

Extension of JobSaver as restrictions begin to ease

On 30 September 2021, in a joint media release, then Premier of NSW, The Hon. Gladys Berejiklian MP and then NSW Treasurer, The Hon. Dominic Perrottet MP, announced that the JobSaver program will be extended to ‘help NSW businesses re-open their doors and get people back into jobs as the state starts to ease restrictions and enjoy greater freedoms’.

Currently, the JobSaver program is co-funded by the Commonwealth and the NSW Government. Once NSW reaches the 80% double COVID-19 vaccination target, the joint Commonwealth and NSW Government JobSaver payments will cease, and the Commonwealth will end its contributions.

From that point, the NSW Government will continue to fund its 50% contribution to JobSaver payments. However, as the NSW Government will be wholly funding the extension of the JobSaver program, the amount of the payments will taper from the current rate of 40% of NSW Weekly Payroll to 30% then to 15%.

The new payment rates are set out at Table 1 below.

The extension of JobSaver will work alongside the NSW Government’s Roadmap and the easing of restrictions. JobSaver payments will end on 30 November 2021, coinciding with the further relaxation of restrictions.

The schedule of JobSaver payments for the remainder of the program is set out at Table 2 below.

From 26 July to 30 September 2021, the NSW Government has paid $4.40 billion in JobSaver payments to 183,249 businesses and nearly $7 billion in support across the major business support programs (including JobSaver). By 30 November, the NSW Government is expected to have unilaterally provided over $8 billion in direct support to businesses and individuals, including through the JobSaver program and its contribution to Commonwealth Disaster Payments.

Micro-business Grant

After NSW reaches the 80% double vaccination target, the Micro-business grant will continue to be available, but at the reduced rate of $750 per fortnight instead of the current rate of $1,500 per fortnight, before ceasing on 30 November 2021.

The new payment rates are set out at Table 1 below.

The schedule of payments under the Micro-business Grant for the remainder of the program is set out at Table 2 below.

Payment rates and schedules

TABLE 1: JobSaver and Micro-business Grant payment rates

The tapering of JobSaver payments will reduce by 25% after 10 October, and by 50% of that amount after the 80% double vaccination rate is reached. The tapering of the Micro-business Grant will reduce by 50% after the 80% double vaccination rate is reached.

 

JobSaver: % of weekly payroll

Weekly JobSaver payment

(payment fortnightly)

Micro-business Grant

Currently

40%

Employing: $1,500 to $100,000

Non-employing: $1,000

Registered charities (at least 15% and less than 30% decline in turnover): $1,500 to $100,000

Accommodation, hospitality and recreation with an aggregated turnover:

  • above $250m to $500m: Up to $300,000
  • above $500m to $1b: Up to $500,000

$1,500 per fortnight

After 10 October

30%

Employing: $1,125 to $75,000

Non-employing: $750

Charities: $1,125 to $75,000

Accommodation, hospitality and recreation businesses with an aggregated turnover:

  • above $250m to $500m: Up to $225,000
  • above $500m to $1b: Up to $375,000

(75% of the original amount)

At 80% double vaccination

15%

Employing: $562.50 to $37,500

Non-employing: $375

Charities: $1,125 to $75,000

Accommodation, hospitality and recreation businesses with an aggregated turnover:

  • above $250m to $500m: Up to $112,500
  • above $500m to $1b: Up to $187,500

(37.5% of the original amount)

$750 per fortnight

After 30 November

- - -

TABLE 2: Fortnightly JobSaver and Micro-business Grant payment schedule (remaining)

JobSaver

Micro-business Grant

13 September to 26 September 2021

20 September to 3 October 2021

27 September to 10 October 2021

4 October to 17 October 2021

11 October to 24 October 2021

18 October to 31 October 2021

25 October to 7 November 2021

1 November to 14 November 2021

8 November to 21 November 2021

15 November to 28 November 2021

22 November to 30 November 2021 
(not a full fortnight)

29 November to 30 November 2021 
(not a full fortnight)

 

Points to note

  1. Businesses and not-for-profit organisations (NFP) are entitled to claim support payments only if they meet the eligibility conditions.
  2. Fortnightly reconfirmation of eligibility and employee headcount will continue for the remainder of the program. Broadly, if a business or NFP receives a payment for a fortnight when they do not experience the requisite decline in turnover or maintain the employee headcount, the business or NFP should advise Service NSW.
    In particular:
    • If a business or NFP confirms they are eligible for a fortnight and they are not eligible, they should contact Service NSW and advise that they are not eligible. Once Service NSW has advised the process for repaying overpayments, arrangements will be made for the business or NFP to repay the funds. 
    • If a business or NFP does not confirm they are eligible for a fortnight commencing after 26 September 2021, and they are eligible, it is expected they will not receive their payment until they confirm that they are eligible. 
    • If a business or NFP did not confirm they were eligible for a September payment and they are not eligible, they would still have received the payment. They should advise Service NSW that they are not entitled to that payment. If they do not do so, they run the risk that they will be picked up in a compliance check and may be required to repay the overpayment. Service NSW will advise the mechanism for repaying overpayments soon. In the meantime, sit tight and ensure your clients set aside the funds so they can be readily repaid when required.
    • If a business or NFP confirms they are eligible for a fortnight and they are eligible, it will correctly receive the support payment for that fortnight and can proceed with confirming the subsequent fortnight. 
  3. Both the JobSaver payment and the Micro-business Grant programs will end on 30 November 2021. It is unclear whether, given the extension to the two programs, businesses and NFPs will consequently be allowed more time to lodge applications beyond 11:59pm on 18 October 2021 (the current close date for applications).
  4. Confirmation of eligibility for the final JobSaver payment will cover the period from 22 November to 30 November, and the final Micro-business Grant payment will cover the period from 29 November to 30 November, both periods of less than 14 days. 

 

 

 

Further guidance and information 

Further guidance and information on JobSaver is available from the Service NSW website.

If you have any specific concerns that have not been outlined above, please email taxpolicy@taxinstitute.com.au.

DISCLAIMER: The material and opinions in this article should not be used or treated as professional advice and readers should rely on their own enquiries in making any decisions concerning their own interests.