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Guidance for legacy employers: How to meet the requirements

Maja Garaca Djurdjevic
Maja Garaca Djurdjevic
18 September 2020 1 minute readShare
Guidance for legacy employers

Fair Work has shed light on the 10 per cent decline in turnover test for legacy employers, expounding on the steps small and large employers will need to take to qualify.

Fair Work has released guidance around the 10 per cent decline in turnover test for legacy employers and the rules eligible financial service providers will need to follow when providing a turnover certificate.

Following the extension of the JobKeeper scheme to 28 March next year, businesses no longer eligible for the wage subsidy have been offered a concession whereby they will retain access to the industrial relations flexibility measures provided they have suffered a 10 per cent decline in turnover.


These temporary measures will allow these employers to cut hours to a floor of 60 per cent of an employee’s ordinary hours of work as at 1 March, and make directions relating to duties and location of work.

Fair Work has now issued guidance to help employers ascertain whether they belong in the legacy employers backet.


According to the regulator, to satisfy the turnover test, a legacy employer needs to demonstrate at least a 10 per cent decline in their actual GST turnover for a relevant previous 2020 completed quarter when compared with the same quarter from 2019. 

Period for JobKeeper direction or agreement

Quarter to meet 10% decline in turnover test 

Comparison quarter 



28 September to 27 October 2020 (inclusive)

June 2020

June 2019

28 October 2020 to 27 February 2021 (inclusive)

September 2020

September 2019

28 February to 28 March 2021 (inclusive)

December 2020

December 2019

However, word of mouth will not be satisfactory, with legacy employers required to obtain a certificate confirming this from an eligible financial service provider.

In order to use the JobKeeper provisions until 28 March, legacy employers will need to have a certificate for the relevant quarters before the start of each period.

Fair Work explained that eligible financial services providers aren’t required to complete an audit or assurance engagement of the employer’s accounts and records in order to issue a certificate.

Instead, they are required to confirm that the test has been met based on the information provided by employers, with penalties for employers who knowingly provide false or misleading information to eligible financial services providers, or knowingly make or keep false or misleading employee records.

Small employers

Alternatively, small employers, employing fewer than 15 employees at a particular time, will need to make a statutory declaration confirming this decline for that quarter.

The statutory declaration needs to outline that the employer has experienced at least a 10 per cent decline in turnover for the relevant quarter, and be completed by an individual who is the employer or is authorised by the employer and has knowledge of the employer’s financial matters.

Fair Work again cautioned that penalties may apply if a person knowingly makes a false statement in the statutory declaration.

To view Fair Work’s latest guidance and more information on statutory declarations, click here.

Guidance for legacy employers: How to meet the requirements
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Maja Garaca Djurdjevic
Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of My Business. 

Maja has a decade-long career in journalism across finance, business and politics. Now a well-versed reporter in the SME and accounting arena, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies and enabling citizens to influence decision-making.

You can email Maja on [email protected] 

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