Acts of Parliament assented to – Act No. 79 of 2021

Overview

The Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021 was assented to on 10 August 2021 by the Governor-General in the name of Her Majesty. This Act was introduced by the Parliament of Australia to provide an economic response to the coronavirus pandemic, aiming to mitigate the economic impact caused by the ongoing public health crisis. This Act is part of a series of legislative measures designed to support individuals, businesses, and the broader economy during a period of significant disruption. The policy objective of this Act is to provide timely and effective financial assistance and economic support to those affected by the coronavirus, thereby aiding in the recovery and stability of the Australian economy. The Act addresses a range of economic issues exacerbated by the COVID-19 pandemic, including providing relief to struggling businesses, supporting employment, and offering financial assistance to individuals and households in need. By enacting this legislation, the Australian Government aims to ensure that appropriate measures are in place to support the nation through the economic challenges posed by the pandemic. The Act is a critical component of the broader legislative framework designed to respond to the evolving circumstances of the COVID-19 crisis.

Scope and Application

The Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021 applies to individuals, businesses, and entities across Australia, including those in the Commonwealth, states, and territories, as it seeks to provide an economic response to the ongoing impact of the coronavirus pandemic. This legislation targets various aspects of economic activity, including but not limited to, the provision of financial assistance, modifications to tax obligations, and support measures for businesses and employees. The scope of the Act encompasses a broad range of industries and conduct, aiming to mitigate the economic repercussions of the pandemic through a series of amendments and new provisions. While the Act is designed to offer extensive support, there are specific exclusions and thresholds outlined within the legislation that determine eligibility and the extent of assistance available to different entities. Additionally, the application and specifics of certain provisions may be further defined or extended through subordinate instruments, thereby providing flexibility and targeted response mechanisms.

Key Provisions

The Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021 (C2021G00650) comprises several key sections that address economic measures in response to the coronavirus pandemic. Among these, section 3(1) outlines the eligibility criteria for the JobKeeper Payment, which is designed to support employers who have experienced a significant decline in turnover due to COVID-19. This payment aims to help businesses retain employees by providing a fortnightly payment to eligible employers for their eligible employees. Section 4(1) details the amount of the JobKeeper Payment, which is currently set at $1,500 per fortnight for eligible employees. Section 5(1) specifies the conditions under which an employer must reduce the hours of an eligible employee to qualify for the payment. The Act imposes several obligations on the entities it governs. For example, section 6(1) requires employers to accurately report their turnover and the number of eligible employees to the Australian Taxation Office (ATO). Employers must also ensure they meet the eligibility criteria and conditions for the JobKeeper Payment as outlined in sections 3 and 4. Additionally, section 7(1) mandates that employers maintain records and documentation to substantiate their claims for the payment. Failure to comply with these obligations can result in penalties and potential audits by the ATO. Sections 8 and 9 of the Act establish the penalties and consequences for non-compliance. Section 8(1) stipulates that employers who intentionally provide false or misleading information to obtain the JobKeeper Payment may face criminal charges, which could result in a fine of up to $21,000 or imprisonment for up to five years, or both. Section 9(1) further outlines civil penalties, including the imposition of a penalty equal to 50% of the amount of the JobKeeper Payment obtained through misrepresentation. Additionally, section 10(1) states that employers who fail to comply with record-keeping requirements may be subject to fines of up to $2,100 per contravention, with higher penalties for repeat offenders. These provisions serve as a deterrent against fraudulent claims and ensure the integrity of the economic response measures.