Coronavirus stimulus: JobKeeper loophole means casual staff may not get $1500

Casual workers have received a fresh blow after it was confirmed those in the job for less than a year would miss out on the subsidy.

Australian casual workers have had their hopes dashed after it was confirmed those who had been in a job for less than 12 months would not receive the JobKeeper payment.

Prime Minister Scott Morrison first announced the new $130 billion wage subsidy late last month. It was designed to help keep businesses afloat and workers in jobs as the coronavirus crisis rages on.

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Under the payment system, eligible employees would be paid $1500 a fortnight for a maximum of six months.

But while the Government initially revealed full-time and part-time employees, sole traders and casual workers who had been working for more than one year would be eligible, concerns were raised that several groups would miss out.

Backlash was especially centred on the fine print that excluded the 1.1 million Australian casual workers who had been in their role for less than 12 months, with union leaders calling on the Government to relax the rules.

According to Fairfax publications, Industrial Relations Minister Christian Porter had indicated he was open to working with the Australian Council of Trade Unions (ACTU) to change the eligibility for casual workers.

The ACTU had been pushing for all casuals to get the payments if they had a reasonable expectation of ongoing work, were it not for the virus.

Industrial Relations Minister Christian Porter had indicated he was open to relax the eligibility for casuals. Picture: AAP Image/Mick Tsikas

But this morning that hope was crushed after Mr Porter told ABC Radio the original rules would remain in place, meaning a casual worker would be defined as a worker who had been attached to the same employer for at least one year.

“You have to have some kind of guiding limits on the outer edges even of a scheme that represents expenditure of this extraordinary amount,” Mr Porter said on air.

“We will require regular and systemic attachment to an employer for 12 months.”

He said the Government would stick to that “standard definition” of a casual worker under the Fair Work Act.

He also doubled down on the exclusion in an interview with Sky News this morning.

“The principle about what counts as a casual employee for the purposes of this scheme is a principle we have lifted from the Fair Work Act,” Mr Porter said.

“It is a sensible principle and that’s the one we will be sticking with.”

And in a press conference in Canberra later this morning, Mr Porter was again grilled about his earlier indication there might be some flexibility surrounding the definition casuals.

He said casuals who had worked regularly and continuously but for more than one employer would not be eligible.

“Not under the definition we’re using, which is a systemic and continuing 12-month of period of employment,” Mr Porter said.

“Even with expenditure of this extraordinary size there has to be some definitions and some lines drawn.

“We think this is a fair and reasonable line but also keep in mind that with the changes to the JobSeeker payment, which is effectively a doubling of Newstart, and the ability of a casual worker to also earn money on top of that payment, there is going to be an equivalence between a casual worker who would receive JobKeeper, $1500 through their employer and someone going on to JobSeeker and has the capacity to pick up work as well.”

He said a line had been drawn as the government did not was to “put the economy into complete carbon freeze”.

“I will confirm this for the seventh time in the course of two days but the definition is systemic and regular definition with the same employer for 12 months.”

He said the exclusion was “not a question of cost” but rather designed to “ensure people who have long-term connections to their employer maintain that connection with the subsidy”.

The alleged backtrack has sparked widespread anger on social media, with many Twitter users calling on the Government to ensure no worker is left behind.

#NoWorkerLeftBehind #WageSubsidyForAll #WageSubsidyNow Please I have nothing and will lose everything if you do not expand. I have no job, minimal savings left and no one to turn to. Please expand it, I beg you.

— flynn gilmore (@flynngilmore4) April 5, 2020

So it seems Up to 1.1 million casual workers will miss out on a wage subsidy 🤔– and potentially be forced into the unemployment queue – because of the Morrison Government’s refusal to act. @cporterwa has many questions to answer. #auspol #Covid_19australia @RonniSalt

— Maurice Billi - armitage*shanks (@mauricebilli) April 5, 2020

This afternoon, Shadow Minister for Industrial Relations Tony Burke slammed the apparent “about face” and vowed to continue fighting for the affected casual workers.

“Of course, we’re not going to let the perfect be the enemy of the good. But we’re not going to also, in the public argument and the debate between now and when this goes through, stop advocating for one million people who the Government wants to leave behind,” Mr Burke said.

“We want them included as well. We’re arguing for that. We’re advocating for that.

“Yesterday, the Government gave them some hope. This morning, the Government, for reasons I don’t understand, has done an about-face. They really should be looking at this situation for casuals who are relying on this income.”

CHARITY WORKERS

However, there has been a win for charity workers when it comes to accessing the scheme.

When the JobKeeper initiative was first unveiled, it was restricted to employers – including not-for profits – with an annual revenue of less than $1 billion that had experienced at least a 30 per cent drop in revenue because of the virus.

Those with a turnover of more than a billion would need to experience a 50 per cent fall in revenue to be eligible.

But late last night, Treasurer Josh Frydenberg confirmed that threshold had been drastically reduced to include not-for-profit charities registered with the Australian Charities and Not-For-Profit Commission (ACNC) that had experienced a 15 per cent fall in revenue.

“Legislation to be introduced into the parliament this week will include a concessional test for ACNC (Australian Charities and Not-for-profits Commission) registered charities given the benefit they provide to the Australian community,” Mr Frydenberg said in a statement.

“A reduced threshold at which a charity is considered to be substantially affected by the coronavirus, as compared to businesses and other not-for-profits, will support a sector which is expected to have a significant increase in demand for its services.”

He also announced the changes on social media.

The JobKeeper legislation we are introducing into Parl on Wed will see charities registered with the ACNC eligible for JobKeeper Payment if they have a turnover decline of 15% or more. This will apply to all registered charities, including those with a turnover of more than $1b.

— Josh Frydenberg (@JoshFrydenberg) April 5, 2020

There are more than 57,000 charities employing more than 1.3 million Australians registered with the Australian Charities and Not-for-profits Commission.

According to the Treasury, the $1500 JobKeeper subsidy is the equivalent of around 70 per cent of the national median wage.

It will be voted on in parliament on Wednesday.