If you have registered your interest in the Commonwealth JobKeeper Payment, you should have received news from the Australian Taxation Office that enrolments are now open.

There are a few steps involved, along with forms for both employer and employee to fill out, making it necessary for most to start the process now.

To aid in this exercise, we have summarised the steps involved and provided links below.

Claiming the JobKeeper Payment on behalf of your employees

1. Eligibility

• Determine the eligibility of your business to participate in the JobKeeper Payment scheme. This includes being able to demonstrate a 30% drop in turnover as a result of COVID-19.
   
• Determine the eligibility of your staff to receive payments. Each employee must have been actively employed in the business on 1 March 2020. They must be older than 16 years of age and not currently receiving any Government payments that conflict with the JobKeeper Payment.
   

2. Enrol

• Contact each employee you plan to nominate. You must ensure they are not nominated through another company, as they can only receive the payment once. Send each employee the JobKeeper Employee nomination notice. This must be returned to you by the end of the month and kept on file.
   
• Enrol the business through the ATO. There are three ways you can do this.
  
  1. Through the ATO Business Portal
  2. Using ATO Online Services through MyGov (for sole traders)
  3. Using a registered tax or BAS agent
  
  Instructions can be found here
   
• Identify and maintain your eligible employees with the ATO. There are a few different ways to do this depending on your payroll software and your number of employees. You can find instructions here.
   
• Make a business monthly declaration. You can do this through your tax agent, or via the ATO Business Portal. Each month you will need to reconfirm your eligible employees as well as make a GST turnover estimate. This is not a means test, but a measure of business progress under the JobKeeper Payment scheme.
   

3. Payments

• Payments will be made to employers via the bank details provided in their enrolment form.
   
• JobKeeper payments are paid to employers in arrears.
   
• Employers must pay their employees (a minimum of $1500 per fortnight) during the applicable pay period and be reimbursed by the ATO. If you are claiming for the two fortnights in April, you will need to ensure your employees are paid the minimum before the end of this month.
   
• In order to remain eligible for the JobKeeper Payment, employers must continue to pay nominated employees a minimum of $1,500 per fortnight, regardless of their normal earnings.
   
• The JobKeeper Payment is considered assessable income for the business receiving the subsidy and normal deductibility rules apply. The payments are not subject to GST.
  
   

Important things to note:

If any employees leave your business during the duration of the JobKeeper Payment scheme, you must make the ATO aware. This can be done through the business monthly declaration.

If your employees have been stood down and are currently receiving other payments eg. Job Seeker, they must contact Services Australia to let them know you have applied for JobKeeper on their behalf in order to avoid a payable debt.

Should you have a question you would like answered in an update, please send it through here.

Currency Of Information & Disclaimer

This update was issued on 21 April 2020 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.

This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

Federal Parliament met yesterday in order to debate the Commonwealth JobKeeper Payment.

The key baseline financial support legislation for businesses for the next six months has now been passed by Parliament.

As of yesterday, 750,000 businesses had registered to take part in the program. If you have not already registered, you can still do so via the ATO website.

The $1,500 fortnightly per employee payment will be available from May. Some of the main points to consider are below. Alternatively, you can read the updated fact sheet from the ATO here.

• Payments will start in May, however they will be backdated to March 30. If you are in a position to do so, the Government encourage you to start paying your employees now and you will be reimbursed next month.
• Eligible employers will be required to demonstrate a 30% drop in income as a result of COVID-19.
• The entire $1,500 must be passed on to each eligible employee, regardless of what their usual pay rate is.
• If your employees are still working and earn more than $1,500 per fortnight, the payment should be used to subsidise those wages, not in addition to.
• The $1,500 payment is before tax.
• No superannuation contribution is required on the $1,500 payment.
• If you are applying for employees that you have already stood down, you must make them aware as quickly as possible. They in turn must alert Services Australia to ensure they are receiving the correct payment.

For more resources relating to business support and the Economic Response to Coronavirus, please check the COVID-19 section of the ADIA website.

Currency Of Information & Disclaimer

This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

On Tuesday 7 April, the National Cabinet released a mandatory code of conduct relating to commercial tenancies during the COVID-19 crisis.

National Cabinet Mandatory Code of Conduct - SME Commercial Leasing Principles During COVID-19

The Code will be adopted and legislated at State and Territory level. Its purpose as laid out in the document itself is:

"to impose a set of good faith leasing principles for application to commercial tenancies (including retail, office and industrial) between owners/operators/other landlords and tenants where the tenant is an eligible business for the purpose of the Commonwealth Government's JobKeeper programme."

The Code has been created as a means to generate temporary arrangements that evenly distribute the liability created by COVID-19 between landlords and tenants as businesses go into 'hibernation' or significantly downscale during the crisis. It is expected that tenants who can demonstrate financial hardship but are still able to trade will continue to pay rent in some capacity.

The Code contains a set of overarching principles intended to be used as a guideline for all parties. These principles will guide tailored temporary arrangements on a case by case basis. Some of these are outlined below.

• SME is defined as a business with annual turnover of up to $50 million
• The tenant must be able to demonstrate financial distress as a result of COVID-19 (defined by eligibility for the Commonwealth JobKeeper program - having a demonstrable loss of 30% of income)
• Landlords and tenants will negotiate in good faith
• The Code will not supersede State legislation but aims to complement it during the pandemic period (as defined by the length of time the JobKeeper program is
• Arrangements are expected to be proportionate, based on the pandemic's specific impact on revenue, expenses and profitability (there is an example of proportionality in Appendix 1 of the Code)
• The parties will assist each other when dealing with relevant stakeholders (government, financial institutions, utility companies etc) in order to achieve arrangements consistent with the objectives of the Code
• National Cabinet expects Australian and foreign financial institutions to support landlords and tenants as they work to implement the mandatory Code
• It is expected arrangements under the Code will include a reasonable recovery period.

Following the overarching principles outlined in the Code, the Leasing Principles section clearly lays out the specific requirements that must be satisfied when drafting a temporary agreement.

These include landlords being unable to terminate a lease due to non-payment of rent as a result of COVID-19, along with the requirement that tenants must remain committed to the terms of their lease and arrangements made under the Code. Failure to do so will result in the loss of protections provided by the Code. It also stipulates any repayments of rental deferrals will be amortised over the remainder of the lease or for a period of no less than 24 months, whichever is greater.

In the definition section of the Code, financial hardship, waivers, deferrals and proportionate are all outlined for those seeking clarity when creating new arrangements.

Read the entire Code here.

You can also visit the COVID-19 section of the ADIA website for additional resources.

Currency Of Information & Disclaimer

This update was issued on 8 April 2020 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.

This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

As the entire business community across Australia adapts to lockdown restrictions, the Australian Dental Industry Association (ADIA) has altered its 2020 events calendar to abide by the restrictions and to reflect the changes in the needs of its membership.

State Branch Briefings

Each quarter ADIA CEO Kym De Britt visits the ADIA State Branches around the country to provide an industry update. During COVID-19, briefings will be done by webinar. This is a great opportunity to have your questions answered by an expert. If there is a professional or particular speaker you would like to be online for these briefings, please send the request through here. You can also send through any relevant questions you would like addressed.

More information on timings and how to dial in will be provided in due course.

Membership

Renewals are generally payable annually. This year, the ADIA has introduced monthly payments. For those who prefer, annual payments will continue to be available. 

ADIA 2020 Conference

The ADIA Conference, originally to be held in October at RACV Royal Pines on the Gold Coast has been postponed to 7 - 9 November 2021. The ADIA office will provide further information and new dates when it becomes possible to do so.

Education moving online

ADIA is transitioning to online education. This will start with the Introduction to Dentistry course and roll out from there. More details will be provided on the training section of the ADIA website as they become available.

ADIA remains open with all staff working from home and are available by phone and email. If there is anything you need, the office phone number is still in use and diverted to our capable staff.

Currency Of Information & Disclaimer

This update was issued on 7 April 2020 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.

This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

Employee Stand Downs: When are they appropriate? What are the rules?

Prior to Coronavirus, standing down employees has always been considered an action to be taken with great caution, and typically, as a last resort.

What if there is nothing for them to do?

The ADIA strongly recommends along with these resources you consult a dedicated employment solicitor for professional advice, specific to your situation, as it pertains to the current climate, as well as recent and imminent legislation.

When can I stand down staff?

According to the Fair Work Ombudsman, you can stand down staff when there is a work stoppage that is beyond your control, or when staff can no longer usefully be employed.

Another example for work stoppage or lack of useful employment is lack of supply of essential equipment. We are starting to see this in the dental industry with the scarcity of personal protective equipment.

I can't justify a total work stoppage, but my workload has reduced so much I don't need all my staff. What are my options?

Importantly, a reduction in profits is generally not considered a reason to stand staff down. In normal circumstances, this would require redundancies. In the current climate, there are other options that could be considered, including requesting staff take unpaid leave, or negotiating a change or reduction to contracted hours. This should be done with the assistance of a legal professional.

What is the difference between a stand down and unpaid leave?

Unpaid leave differs to a stand down in that a discussion with the individual employee is required and they must agree to take the leave. Standing down staff is generally a decision that affects an entire job function, like what we have seen in the aviation industry with cabin crew, or one that is issued company-wide like what we have seen in the entertainment industry with cinemas and nightclubs closing their doors.

What are my obligations to my stood-down employees?

While stood down, staff will continue to accrue leave entitlements this is true for both annual leave and personal carers leave. Long service leave is a state-based concern and you should check the rules that apply to your state. Leave entitlements should be calculated into any business decisions you are making.

* If you have staff still working their normal hours, you are still required to pay their superannuation. If there is a gap between their regular earnings and the Job Keeper Payment (ie. they are earning more because of the payment), the difference does not require superannuation payment.

What paperwork is required for a stand down?

Best practice for standing down staff is a discussion at the outset. Explain the reasons for the work stoppage. Help your staff understand this is in no way performance related and is beyond your control. From here you should issue a letter outlining the situation. This should include the reasons for the work stoppage, the date the stand down period will begin and the minimum length of time the stoppage will last.

The letter should also specifically state the stand down period will be unpaid, unless the employee chooses to use any annual or long service leave owing to them.

Do staff need to take their entitlements (annual leave / long service leave) before they are stood down?

Staff are not required to exhaust their leave entitlements before entering an unpaid stand-down period. However, it is a requirement that those entitlements are made available should the employee wish to use them.

I will need to reduce my workforce after the COVID-19 crisis. Can I stand down some staff and retrench others? Is it all one or the other?

You must also ensure there is no discrimination present. For example, if you are making one person redundant that has the same role as another person who will remain employed, you must be able to provide a business reason for the person you kept employed. They may have more demonstrable relevant experience, higher qualifications, more time served in the business etc.

I have already negotiated reduced hours and pay with my staff in order to get by financially. What are my obligations now the JobKeeper Payment has been announced? Can I increase hours?

The coming JobKeeper Payment may change some employers' circumstances. The best place for advice around this is the Australian Taxation Office. As the legislation has not yet been passed, there is not a lot of information available at this time. It is likely there will be further published advice in the coming weeks. We will pass this information on as it becomes available.

Does the JobKeeper Payment mean I have to pay my staff to do nothing? Can I get them to do something outside their contract?

According to the Fair Work Ombudsman, the reason for stand downs are total work stoppage beyond the employer's control, or when the employee is "unable to be usefully employed. This is not limited to the work an employee usually performs."

I made some tough decisions prior to the JobKeeper Payment announcement. How do I 'reengage' staff? Do they get back pay until 30 March?

It is likely the Australian Taxation Office will publish some guidance on this once the legislation has passed, however in the Prime Minister's announcement, any staff member who was actively employed on 1 March and is reengaged will be entitled to the JobKeeper Payment. The payment will be back dated until March 30 once legislation is passed.

I have already retrenched a large amount of staff. Can I 're-engage' some, or must it be all?

At the time you made the redundancies, you should have been able to demonstrate the role retrenched no longer exists and will not exist beyond COVID-19. The people you do reengage must be for a demonstrable reason as above more experience, qualifications etc. You should consult a legal professional before moving forward.

Can a staff member request to be stood down (eg, a parent with children at home)?

No. The only reasons for a stand down is a work stoppage that is beyond the employer's control, a lack of vital equipment, or an employee no longer being able to be 'usefully employed'.

Am I able to call staff back one by one as work becomes available? What is the protocol?

If you plan to reengage some employees before others, you will need to be able to demonstrate objective criteria. Again, this could be experience or qualifications. It could also mean bringing back your permanent staff before casuals, or sharing the available hours across several employees in order to reengage them with the business, if that is an option that is available to you.

Visit the COVID-19 section of the ADIA website for more information.

Currency Of Information & Disclaimer

This update was issued on 1 April 2020 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.

This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

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