JobKeeper IMPORTANT change DUE Monday (24th Aug)
On Friday 14 August 2020 the Treasurer released updated JobKeeper rules dealing with eligible employees which apply from 3 August 2020 onwards.
If you are currently receiving JobKeeper and have employed any new employees between 1 March 2020 and 1 July 2020, you may be eligible to now add them to the scheme for Aug and Sep.
NOTE: nomination forms need to be provided to employees by Monday 24th August 2020 if they have become eligible for JobKeeper from 3 August 2020.
In practical terms this means:
- If someone commenced employment with an entity after 1 March 2020 but by 1 July 2020 and they were an employee of the entity on that date then they can potentially be eligible for JobKeeper from 3 August 2020 onwards, assuming all other basic conditions are met.
- Casuals who hadn’t been employed for at least 12 months leading up to 1 March 2020 can potentially be eligible for JobKeeper if they have been employed on a regular and systematic basis for at least 12 months leading up to 1 July 2020 (assuming all other basic conditions are met).
- Individuals who failed the age-related conditions or residency conditions at 1 March 2020 can potentially be eligible employees if they met those conditions on 1 July 2020.
JobKeeper 2.0 – Overview of the Changes
The Government recently released a Fact sheet: Extension of the JobKeeper Payment which we thought you may find useful.
It outlines details around the extension of the JobKeeper Payment as well as the changes announced on 7 August 2020 to adjust the employee reference date for eligibility and make it easier for businesses to access JobKeeper payments.
- The JobKeeper Payment, which was originally due to run until 27 September 2020, will continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.
- The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021.
- From 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.
- From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover).
- From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
- From 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in the December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
- To be eligible for JobKeeper Payments under the extension, businesses will still need to demonstrate that they have experienced a decline in turnover of 30 per cent for those with an aggregated turnover of $1 billion or less.
- If a business or not-for-profit does not meet the turnover test for the extension period, this does not affect their eligibility prior to 28 September 2020.
Extended deadline for top-up payments
- Crucially, the ATO has announced that the deadline for making payments for new eligible employees for JobKeeper fortnights starting on 3 August 2020 and 17 August 2020 has been extended to 31 August 2020 (ie, to meet the condition for employers to pay at least $1,500 to eligible employees in each JobKeeper fortnight).
Employees who have moved to a new employer
- The other key change to the rules is that someone who was previously nominated for JobKeeper with an entity as an eligible employee or eligible business participant can potentially be nominated for JobKeeper with a different entity if certain conditions are met. The individual must have ceased to be employed or actively engaged in the business (as a business participant) of the original entity after 1 March 2020 but before 1 July 2020. They must also meet the conditions to be treated as an eligible employee of the new employer at 1 July 2020.
More information on the eligibility rules for businesses and not-for-profits and their employees is at: www.ato.gov.au/General/JobKeeper-Payment/.