Update/Correction on Jobkeeper payments under NSW Workers’ Compensation rules

Yesterday, I posted an article that included my disappointment that businesses were potentially being penalised by having to pay WorkCover premiums on JobKeeper payments to workers who were not in fact working. This being brought to my attention by an experienced insurance broker. The original source was this notice on the icare website.

I am pleased to advise that the icare website appears to have been updated and, in addition, the following note was emailed to those in industry, stating that JobKeeper payments to employees who are not working, but receiving the payment, are NOT to be included in Workers Compensation premiums. Thanks Mark [surname and email provided] for letting me know of the change.

This is great news and makes logical sense. To do otherwise would be penalising the employer for participating in the scheme, instead of helping them.

Here is a copy of the Workers Compensation regulation bulletin.

If you had already approached icare in relation to this, you should do so again as their stance has changed. You should be able to reduce your wage estimate accordingly, and your premium should reduce. icare have also indicated they will adjust estimates mid-term.

I understand from others in our blog community that the same applies in Queensland and the ACT. Due to my current workload, I have not had a chance to check all the states, so please do not take my word for this and check the rules in your jurisdiction.

Payroll Tax is being addressed by each state differently, but I do hope the same rules are applied to Payroll Tax for those companies that do not qualify for individual state’s stimulus measures.

Well done to all concerned in fixing the anomaly.