Sayonara 2020! Welcome 2021…
As we head towards the end of the year, here’s a wrap up of the key dates for your diary and some welcome good news to boot!
Australia Bounces Out of Recession As Economy Grows 3.3%
Australia’s economy grew by 3.3% in the third quarter as it rebounded from its first recession in nearly 30 years. This rebound in Q3 GDP reversed around 40% of the decline during the first half of the year and it is expected to return to pre-pandemic levels by mid-2021.
January 4, 2021 – Employers meet the wage conditions for payments in FN20
January 4, 2021 – Extension 2 kicks in, the rates reduce to $1,000 & $650 per fortnight
January 28, 2021 – December monthly declaration for JobKeeper reimbursements for FN18, 19, 20
January 31, 2021 – Employers meet the wage conditions for FN 21 & 22
As announced in the 2020-21 Budget, we will now share additional STP information with Services Australia. This data will pre-fill employer details for people who are on an income support payment, making it easier for them to report their employment income fortnightly to Centrelink.
If you report through STP and have employees that receive Centrelink payments, your employees will see your organisation’s name and ABN in their Centrelink online account over the next few months.
The JobMaker Hiring Credits scheme involves wage subsidies for businesses that increase their number of staff by employing young workers aged 16-35 years old. Credits can be claimed for employees hired between 7 October 2020 and 6 October 2021, with businesses able to claim up to a total of $10,400 per eligible employee over the 1-year period for those aged 16-29 years old, and $5,200 for those aged 30-35 years old.
To be eligible, these new employees will have been receiving a government payment such as JobSeeker, Youth Allowance, or the Parenting Payment for at least two of the six fortnights before you hired them. Also, employees must work a minimum average of 20 hours per week during the JobMaker period. You may register via the ATO website or contact us to assist you.
Changes in Casual Employment
There have also been significant changes for Casual Employment, which involves overtime pay rates in some awards. If your award has been affected by these changes but you failed to update your systems, you run the risk of underpaying your staff.
You may check if your award was updated by accessing the Fair Work Commission’s Schedule of Determinations here.
If you find a mistake has been made, you need to work out how long the employee has been underpaid, how much was actually paid and should have been paid, and back pay the employee. Make sure to include the overtime, penalty rates, and superannuation when paying the variance. If you have any cause for concern please contact us to discuss.