Workers’ compensation scheme regulators in NSW, Victoria, Queensland and SA have provided clarity on the status of payments received from the $130 billion JobKeeper wage subsidy program, Willis Towers Watson says.

The four jurisdictions clarified the payments would not be counted as assessable remuneration if subsidised employees are not actually performing any work, according to the broker.

“The regulators have taken a fair and reasonable approach that is based on the inherent risk of the organisation, which we’re very pleased about,” Head of Workplace Risk for Australasia Kosta Savidakis told insuranceNEWS.com.au.

“This will provide a welcome relief for businesses who are already dealing with a multitude of issues that have arisen as part of this pandemic including managing their return to workplaces as restrictions ease.”

The broker had submitted a request for more information from the eight scheme regulators in response to clients’ concerns over the matter.

Workers’ compensation premiums are based in part on the payroll. For businesses in sectors such as retail and aviation, clarity over whether JobKeeper payments qualify as “declarable remuneration” is especially critical.

Scheme regulators in WA, the ACT, the NT and Tasmania are still awaiting advice from Treasury, Willis Towers Watson says.