Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020

Administered by Department of the Treasury

Legislation au F2020L00605 Rules Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Treasurer

Coronavirus Economic Response Package (Payments and Benefits) Act 2020

Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020

Subsection 20(1) of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 (the Act) provides that the Treasurer may make rules prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Subsection 7(1) of the Act provides that the rules may make provision for and in relation to one or more kinds of payments by the Commonwealth to an entity in respect of a time that occurs during the prescribed period (the period between 1 March 2020 and 31 December 2020), and the establishment of a scheme providing for matters relating to one or more of those payments, and matters relating to such a scheme. Any payments must relate to the prescribed period.

The object of the Act is to provide financial support to entities to assist with the impact of the Coronavirus known as COVID-19. In particular, the Act establishes a framework for the Treasurer to make rules about one or more kinds of payments to an entity in respect of a prescribed period.

On 30 March 2020, the Australian Government announced a wage subsidy called the JobKeeper payment for entities that have been significantly affected by the economic impacts of the Coronavirus. In support of the Act, the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (the Rules) establish the JobKeeper scheme and specify details about the scheme, including when an employer or business is entitled to a payment and other matters relevant to the administration of the payment.

The purpose of the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020 (the Amending Rules No. 3) is to refine and clarify elements of the JobKeeper scheme to ensure that it most appropriately supports businesses and employees affected by the significant economic impact caused by the Coronavirus. In particular, the Amending Rules No. 3 ensure the 6 month turnover test period applying to universities is limited to only those universities that are Table A providers within the meaning of Higher Education Support Act 2003.

Details of the Amending Rules No. 3 are set out in Attachment A.

Prior to making the instrument, consultation on draft legislation was conducted with a number of stakeholders, including the Australian Taxation Office, and the Department of Education, Skills and Employment. These stakeholders provided expert advice regarding the operation of the draft legislation, and this advice was incorporated into the final design of the instrument.

An exemption from Regulation Impact Statement requirements was granted by the Prime Minister as there were urgent and unforeseen events.

The Amending Rules No. 3 do not materially change the estimated financial impact of the JobKeeper scheme that was included in the Explanatory Memorandum for the Act and Schedule 2 to the Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020.

The Amending Rules No. 3 are a legislative instrument for the purposes of the Legislation Act 2003.

The Amending Rules No. 3 commenced immediately after the time they were registered on the Federal Register of Legislation.

A Statement of Compatibility with Human Rights is at Attachment B.

ATTACHMENT A

Details of the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020

Section 1 – Name of the Instrument

This section provides that the name of the Instrument is the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020 (the Amending Rules No. 3).

Section 2 – Commencement

The Amending Rules No. 3 commence immediately after the time they were registered on the Federal Register of Legislation.

Section 3 – Authority

The Amending Rules No. 3 are made under the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 (the Act).

Section 4 – Schedules

This section provides that each instrument that is specified in the Schedules to this instrument will be amended or repealed as set out in the applicable items in the Schedules, and any other item in the Schedules to this instrument has effect according to its terms.

Schedule 1 – Amendments

JobKeeper payment amendments

The Amending Rules No. 3 ensure the 6 month turnover test period applying to universities is limited to only those universities that are Table A providers within the meaning of Higher Education Support Act 2003.

Decline in turnover test –universities

Paragraph 8(7)(aa) requires that universities use the six month period commencing on 1 January 2020 as the turnover test period to determine if they have had a sufficient decline in their turnover which potentially qualifies them for the JobKeeper scheme. This ensures that a significant period of the year is tested to confirm any decline in turnover.

The six month test period currently applies to an entity that is a Table A provider or a Table B provider within the meaning of sections 16-15 and 16-17 of the Higher Education Support Act 2003. Generally, Table A providers are approved for Australian Government grants under the Higher Education Support Act 2003 and their students can receive all forms of assistance. Table B providers are eligible for some grants for particular purposes. The terms Table A and Table B provider are defined in subsection 4(1) to take their meaning under the above Act.

The Amending Rules No. 3 amend paragraph 8(7)(aa) so that it only applies to Table A providers. Table B providers will instead be permitted to assess their eligibility based on a monthly or quarterly test period similar to other entities.


ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020 (the Amending Rules No. 3) is to refine and clarify elements of the JobKeeper scheme to ensure that it most appropriately supports businesses and employees affected by the significant economic impact caused by the Coronavirus. In particular, the Amending Rules No. 3 ensure the 6 month turnover test period applying to universities is limited to only those universities that are Table A providers within the meaning of Higher Education Support Act 2003.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Coronavirus Economic Response Package (Payments and Benefits) Act 2020 was enacted to provide financial support to entities affected by the economic impacts of the Coronavirus (COVID-19). The Act was introduced to address the urgent need for a robust economic response to mitigate the severe disruptions caused by the pandemic. It allows the Treasurer to make rules prescribing matters required or permitted by the Act to facilitate payments and benefits during the specified period between 1 March 2020 and 31 December 2020. The policy objective is to assist businesses and employees facing economic hardship due to the pandemic. The Act was enacted by the Australian Parliament, reflecting the urgency and national scope of the economic challenges posed by COVID-19. The Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020, made under this Act, aim to refine and clarify aspects of the JobKeeper scheme, ensuring it effectively supports affected entities.

Scope and Application

The Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020 applies to entities affected by the economic impacts of COVID-19, particularly focusing on the JobKeeper scheme. This scheme is designed to provide financial support to eligible businesses, helping them retain employees during the prescribed period between 1 March 2020 and 31 December 2020. The Act empowers the Treasurer to make rules that prescribe matters necessary for the implementation of the JobKeeper payments, ensuring that eligible entities can receive financial assistance. The rules specifically refine and clarify the scheme, ensuring it appropriately supports businesses and employees, including a notable amendment that restricts the six-month turnover test period for universities to only those that are Table A providers under the Higher Education Support Act 2003. This amendment differentiates the eligibility criteria for Table A and Table B providers, with the latter being permitted to assess their eligibility based on a monthly or quarterly test period. The legislative instrument extends the application of the JobKeeper scheme through subordinate rules, which were developed after consultation with relevant stakeholders and are intended to ensure the scheme operates effectively and equitably. The rules do not materially alter the overall financial impact of the JobKeeper scheme.

Key Provisions

The Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 3) 2020 (the Amending Rules No. 3) introduce refinements to the JobKeeper scheme, specifically targeting the application of the six-month turnover test to universities. The main operative sections (Section 4 of Schedule 1) clarify that the six-month turnover test period, which assesses the decline in turnover necessary for eligibility under the JobKeeper scheme, applies only to universities classified as Table A providers under the Higher Education Support Act 2003. This amendment ensures that the turnover test period is not uniformly applied to all universities but is instead limited to those that meet the criteria of Table A providers, aligning their eligibility criteria more closely with other entities that use monthly or quarterly test periods. The Amending Rules No. 3 impose specific obligations on entities seeking to avail themselves of the JobKeeper payments. Universities that qualify as Table A providers must adhere to the six-month turnover test period to assess their eligibility. Conversely, Table B providers and other entities must use a monthly or quarterly test period to determine their eligibility for the JobKeeper scheme. These rules necessitate that entities accurately determine their provider classification and apply the appropriate turnover test period as specified in the legislation. Failure to comply with the provisions of the Amending Rules No. 3 may result in entities being ineligible for JobKeeper payments. The Act itself does not explicitly outline offences, penalties, or specific civil or criminal consequences for non-compliance with these rules. However, incorrect application of the turnover test period could lead to disqualification from the JobKeeper scheme, resulting in the loss of financial support intended to mitigate the economic impacts of COVID-19. The overarching framework of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020, which includes other measures and potential penalties, would apply to any broader non-compliance with the scheme's requirements.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.