Please check this page and these links regularly for updates
The information in this section is current at 11 May 2020. Please check the Australian Tax Office’s JobKeeper Payment webpage (external link) for any updates or changes.
About JobKeeper
The JobKeeper Payment Scheme is a Commonwealth Government scheme to help keep workers in jobs and support businesses affected by the significant economic impact caused by COV1D-19. Find specific details about the JobKeeper Payment Scheme at the Australian Tax Office’s JobKeeper Payment webpage (external link) and the Treasury's JobKeeper payment webpage (external link).
About the Tasmanian workers compensation scheme
As the Tasmanian workers compensation scheme is a privately underwritten scheme, the relationship between employer and insurer is determined by their insurance contract and by legislation. Neither WorkSafe Tasmania (the State of Tasmania) nor the WorkCover Tasmania Board is a party.
However, WorkSafe Tasmania provides the following guidance about how the JobKeeper Payment should be treated for the purposes of the Workers Rehabilitation and Compensation Act (external link). However, workers, employers and insurers may wish to obtain their own legal advice about their own situations.
JobKeeper and workers compensation
The fundamental question is whether the JobKeeper Payment represents ‘earnings’. The general view is that earnings are monies paid in return for the exercise of labour or skill on the part of the worker.
This means that a JobKeeper payment to a worker is only to be considered for the purposes of workers compensation insofar as the payment is a return for the exercise of labour or skill on the part of the worker.
In short, this means that Job Keeper payment is not included in the calculations for an employer’s wage declaration or a worker’s weekly compensation benefits, where:
- the JobKeeper payment is made to a worker who has been stood down and is not working; or
- the JobKeeper payment is above the worker’s normal wages (and the worker is working).
The tables below provide examples of how the JobKeeper payment should be treated in differing circumstances.
Table 1: Wage declaration and premium setting
Category | Example | Employer obligation to eligible employee | Expected consequence | Risk implications |
Employee stood down without pay | Employee does not receive pay | Employer pays employee $1,500 per fortnight (top-up payment) | The $1,500 top-up payment will not be considered ‘wages’ | Employee is not considered to be working and will not be covered for workers compensation |
Employee currently earning a wage of more than $1,500 a fortnight | Employee earns $2,500 a fortnight | Employer pays employee current wage of $2,500 | $2,500 is ‘wages’ and will be required to be included in wages declaration | Employee considered to be covered for workers compensation |
Employee currently earning exactly $1,500 a fortnight | Employee earns $1,500 a fortnight | Employer pays employee current wage of $1,500 | $1,500 is ‘wages’ and will be required to be included in wages declaration | Employee considered to be covered for workers compensation |
Employee currently earning less than $1,500 a fortnight | Employee earns $500 a fortnight | Employer pays employee $1,500 per fortnight made up of: 1. current wage of $500 per fortnight; and 2. $1,000 necessary to top-up the employee to $1,500 per fortnight (top-up payment) | $500 is ‘wages’ and will be required to be included in wages declaration The $1,000 top-up payment will not be ‘wages’ | Employee considered to be covered for workers compensation |
Table 2: Calculation of weekly benefits
Condition | Example | Impact to Employee | Impact to Insurer | Risk |
Full-weekly benefit | Employee is not working and receiving full entitlement benefits | Employee is not eligible for JobKeeper payment. Weekly benefit will be calculated without reference to JobKeeper | Insurer will continue to pay the full weekly benefits | No change |
Partial-weekly benefits | Employee is paid equal to or less than $1,500 a fortnight | If employee is eligible for JobKeeper subsidy they will be paid $1,500 from employer | Insurer does not pay weekly benefits, and employer must pass on full $1,500 a fortnight | Claims experience will be reduced for employer |
Partial-weekly benefits | Employee is paid more than $1500 a fortnight | If employee is eligible for JobKeeper subsidy they will be paid $1,500 from employer | Insurer will pay the difference after the employer pays $1500 a fortnight | Claims experience will be reduced for employer |
Medical only claim | If employee is eligible for JobKeeper subsidy they will be paid $1,500 from employer | Insurer will continue to pay the medical component of claim | No change |