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Important information for Employees regarding JobKeeper Payments and WorkCover Premiums

On 5 May 2020, the Victorian Government confirmed that any eligible Commonwealth Government JobKeeper Payments to meet the $1,500 threshold will not affect the calculation of the WorkCover premium.

These changes are to support Victorian employers during the uncertainty of the coronavirus pandemic.

Basically, payments made relating to JobKeeper, are exempt from Workcover and payroll tax, but only to the extent that they are above their normal wage.

Therefore businesses receiving JobKeeper aren’t going to be able to just use the payroll summary reports this year in order to work out their workcover rateable remuneration. They will need to do a bit more digging into their pay runs.

The following table summarises what JobKeeper Payments made by an employer who is receiving JobKeeper Payments are rateable remuneration.

Employer’s Situation Example Rateable Remuneration
Employee stood down without pay Employee does not perform any work and does not receive normal pay. Receives JobKeeper wage subsidy via employer. The JobKeeper Payment ($1,500) is not regarded as rateable remuneration
Employee continues to work and currently earning a wage of less than $1,500 per fortnight Employee earns $1,000 per fortnight Any ‘additional’ JobKeeper Payment passed onto the employee (in this case $500) is not regarded as rateable remuneration. Normal earnings (in this case $1,000) remain rateable remuneration.
Employee continues to work and normally earns at least $1,500. These wages are subsidised by the JobKeeper Payment Employee normally earns $2,500 per fortnight, but is subsidised with JobKeeper payment via employer. All of this payment is rateable remuneration.

For more information click here to view the WorkCover information guide

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