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Re: Job keeper real estate credit / debit retainer

Initiate

Replies 2

Has anyone had clear confirmation regarding this issue as yet? This is absolutely ridiculous and SO UNFAIR! 

It states that The JobKeeper payment is designed to reimburse your employer for the amounts up to $1500 per fortnight (before tax) they pay to the employee. They cannot keep any part of the subsidy, the full amount needs to be passed on to the employee which is exactly what has been happening each month for everyone else in our office but those who are on a debit /credit structure are expected to pay this back to our employer through their future commissions?

We understand that jobkeep is to help the employer in this time but why is it OK that this leaves the employee in a mound of debt in such a time? When they can't even work to make the commissions right now so any commission they HAD coming in has now gone towards paying back this debt to the company WHEN THE COMPANY HAS ALREADY BEEN REIMBURSED BY THE GOVERNMENT! A commission only agent, receives the subsidy if no commission is made for the month but then do not have to pay this back. Why should it be any different? A normal person on wages that is stooddown and not working any hours is receiving this top up without having to pay this back. HOW is it fair for people on a retainer be expected to reimburse their employer when they have already been reimbursed? 

 

SOMETHING NEEDS TO BE DONE ABOUT THIS! 

Initiate

Replies 1

I feel really sorry for the Melbourne real estate agents that could very well end up with a $76k debt at the end of 12 months.              They have had very little opportunity to meet vendors and would of been far better off on Jobseeker but they would of had to quit their jobs making themselves ineligible for it. A real catch 22. No one at the ATO seems to grasp the problem. The adjudicator from the ATO stated in a reply that real estate sales people were not worse off because their employer was paying them a debit payment, just as they were prior to Covid19. He failed to grasp the fact that real estate agents, especially in Melbourne, have no chance of earning commissions to pay back their employers because of the Covid 19 shutdown. 

 

Initiate

Replies 0

Actually ATO & REIV are both stating that JobKeeper that can't be used as a retainer for the exact reasons you state above.

 

Go to:

https://community.ato.gov.au/t5/COVID-19-response/Real-Estate-Commission-Only-amp-Retainer/m-p/11914...

 

ATO states: JobKeeper obtained correctly is not repayable. It forms a reimbursement the employer must pay the employee in order to claim it. As for terms and conditions of employment this is covered off by Fair Work. They may be able to shed some light around commission only arrangements for you.

Initiate

Replies 0

In Victoria, retainer debit/credit system is not contained in the Real Estate Award, it is instead adopted by many agencies as a convenient way to calculate commission entitlement.

 

In regular times the wage paid to a salesperson comes out of the employer's "pocket" and is recovered from the commission the salesperson earns. The salesperson is then paid the amount by which commission earned exceeds the amount that has come out of the employer's pocket.

 

Under JobKeeper,  a  portion  of  the wage each fortnight comes from the government rather than the employer, so if the employer "recovered" it they would be recovering something which has not been an expense to them and in effect they would not be passing on the JobKeeper payment to the employee.

 

Initiate

Replies 0

REIV answers this question in their August 2020 Magazine:

 

Should my employer be treating JobKeeper as part of my retainer to be recovered through commission on sales?

 

Under the Real Estate Industry Award salespeople, unless they are employed on a commission only basis, are

entitled to a wage. Their employment agreement should also contain details of how commission will be calculated The retainer debit/credit system is not contained in the Award, it is instead adopted by many agencies as a convenient way to calculate commission entitlement.

 

In regular times the wage paid to a salesperson comes out of the employer's "pocket" and is recovered from the commission the salesperson earns. The salesperson is then paid the amount by which commission earned exceeds the amount that has come out of the employer's pocket.

 

Under JobKeeper,  a  portion  of  the wage each fortnight comes from the government rather than the employer, so if the employer "recovered" it they would be recovering something which has not been an expense to them and in effect they would not be passing on the JobKeeper payment to the employee.

 

The ATO is working to ensure the integrity of JobKeeper and among the fraudulent behaviours they have

identified is employers not passing on the run JobKeeper payment to employees.

 

https://issuu.com/eamagazine/docs/ea_august_2020_web/18

Initiate

Replies 0

REIV answers this question in their August 2020 Magazine:

 

Should my employer be treating JobKeeper as part of my retainer to be recovered through commission on sales?

 

Under the Real Estate Industry Award salespeople, unless they are employed on a commission only basis, are

entitled to a wage. Their employment agreement should also contain details of how commission will be calculated The retainer debit/credit system is not contained in the Award, it is instead adopted by many agencies as a convenient way to calculate commission entitlement.

 

In regular times the wage paid to a salesperson comes out of the employer's "pocket" and is recovered from the commission the salesperson earns. The salesperson is then paid the amount by which commission earned exceeds the amount that has come out of the employer's pocket.

 

Under JobKeeper,  a  portion  of  the wage each fortnight comes from the government rather than the employer, so if the employer "recovered" it they would be recovering something which has not been an expense to them and in effect they would not be passing on the JobKeeper payment to the employee.

 

The ATO is working to ensure the integrity of JobKeeper and among the fraudulent behaviours they have

identified is employers not passing on the run JobKeeper payment to employees.

 

Initiate

Replies 0

REIV answers this question in their August 2020 Magazine:

 

Should my employer be treating JobKeeper as part of my retainer to be recovered through commission on sales?


Under the Real Estate Industry Award salespeople, unless they are employed on a commission only basis, are

entitled to a wage. Their employment agreement should also contain details of how commission will be calculated The retainer debit/credit system is not contained in the Award, it is instead adopted by many agencies as a convenient way to calculate commission entitlement.

 

In regular times the wage paid to a salesperson comes out of the employer's "pocket" and is recovered from the commission the salesperson earns. The salesperson is then paid the amount by which commission earned exceeds the amount that has come out of the employer's pocket.

 

Under JobKeeper,  a  portion  of  the wage each fortnight comes from the government rather than the employer, so if the employer "recovered" it they would be recovering something which has not been an expense to them and in effect they would not be passing on the JobKeeper payment to the employee.

 

The ATO is working to ensure the integrity of JobKeeper and among the fraudulent behaviours they have

identified is employers not passing on the run JobKeeper payment to employees.

 

https://issuu.com/eamagazine/docs/ea_august_2020_web/18

Newbie

Replies 0

Do we have a ruling / policy around this matter yet either from ATO or Fairworks? 

 

My situation is unless I find answers, employers are right to offset my commission against jobkeeper payments. 

 

ATO Community Support

Replies 0

Hi @Angie1

 

There are no public rulings from us regarding this matter as we deem the situation to be cut and dry - your employer cannot "reclaim" the JobKeeper amount from you, as it means they're reclaiming something already subsidized

 

If you wish for a legal ruling on this matter, you will need to apply for a private ruling