Senate

Supplementary Explanatory Memorandum

(Circulated by authority of the Attorney General and Minister for Industrial Relations, the Hon. Christian Porter)

Chapter 1 - Amendments to Schedule 2 - JobKeeper-related provisions of the Fair Work Act 2009

Outline of chapter

1.1 This government amendment makes minor technical changes to the operation of the 10% decline in turnover certificate that legacy employers must obtain in order to be eligible to give JobKeeper enabling directions or requests for employees to change their days or times of work under Part 6-4C of the Fair Work Act.

Context of amendments

1.2 The Bill enables an eligible financial service provider to issue a written certificate that states that, in the opinion of the eligible financial service provider, a particular employer satisfied the 10% decline in turnover test for the designated quarter applicable to a specified time. This is called a 10% decline in turnover certificate.

1.3 The terms 'eligible financial service provider' and '10% decline in turnover test' are defined in the Bill.

1.4 The intention of the 10% decline in turnover certificate is that it will require a declaration from an eligible financial service provider that relates to the specified employer, and confirms that the employer satisfied the 10% decline in turnover test for the designated quarter applicable to a specified time.

Summary of new law

1.5 To ensure that the policy intention of the provision is given effect, minor technical amendments have been drafted to the provisions in the Bill to:

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remove 'registered company auditor' and 'tax (financial) adviser' from the definition of 'eligible financial service provider' to ensure that only those professionals with the most appropriate skills and expertise are able to issue a 10% decline in turnover certificate; and

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make it clear that the issuing of the certificate involves a declaration from an eligible financial service provider that relates to a specific employer and confirms that the employer satisfied the 10% decline in turnover test for the designated quarter applicable to a specified time. This requires the eligible financial service provider to confirm that the test has been met based on the information provided, and does not constitute an audit or assurance engagement. The amendment achieves this by removing the word 'opinion' from the relevant provision in the Bill.

Comparison of key features of new law and current law

Detailed explanation of new law

Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020

Item 1 - Schedule 2, item 10, page 9 (line 6)

Item 2 - Schedule 2, item 10, page 9 (line 7)

Item 3 - Schedule 2, item 12, page 9 (after line 17)

Item 4 - Schedule 2, item 12, page 9 (lines 18 and 19)

Item 5 - Schedule 2, item 12, page 9 (lines 20 and 21)

1.6 The term 'eligible financial service provider' is defined in the Bill as including a registered company auditor, a registered tax agent, BAS agent or tax (financial) adviser, or a qualified accountant. These items remove registered company auditors and tax (financial) advisers from the definition to ensure that only those professionals with the most appropriate skills and expertise are able to issue a 10% decline in turnover certificate.

Item 6 - Schedule 2, item 13, page 11 (lines 1 and 2)

1.7 Paragraph 789GCD(1)(b) of the Bill specifies the operation of the 10% decline in turnover certificate issued by an eligible financial service provider. It includes a requirement that the certificate state that, in the opinion of the eligible financial services provider, the employer satisfied the 10% decline in turnover test for the designated quarter applicable to a specified time.

1.8 This item amends paragraph 789GCD(1)(b) to replace the words "states that, in the opinion of the eligible financial service provider," with the words "confirms that".

1.9 This means a 10% decline in turnover certificate must confirm, based on the information provided, that the specified employer satisfied the 10% decline in turnover test for the designated quarter applicable to a specified time.