Jobkeeper – Urgent Action required to Assess Your Eligible Employees

For JobKeeper fortnights starting on or after 3 August 2020 the key date for assessing employee eligibility is now 1 July 2020 (previously 1 March 2020).

Therefore new employees may now be eligible or existing employees that were not previously eligible may now be eligible.

Employers will need to work through the eligibility criteria for employees to meet the ‘one in, all in criteria’, ensure employee nomination notices are in place, and ensure that sufficient amounts are paid to these newly eligible employees by 31 August 2020 to be eligible for JobKeeper payments for the Jobkeeper fortnights commencing 3 and 17 August 2020.

This change predominantly impacts employees who were previously ineligible because they were not employed on 1 March, casuals who were not employed for 12 months at 1 March 2020 (but may have been on 1 July 2020), and potentially those who failed the residency or age related tests at 1 March (but might now meet those conditions as at 1 July 2020).

To meet the 1 July test the employees must satisfy all of the following on 1 July 2020:

  • they were employed by you either as a
    • non-casual employee (whether full-time, part-time or fixed-term)
    • long-term casual employee (employed on a regular and systematic basis during the 12 month period that ended 1 July) and they were not a permanent employee of any other employer
  • they were aged 18 years or older (if you were 16 or 17 you can also qualify if you were independent or not undertaking full time study on 1 July 2020)
  • they were either
    • an Australian resident (within the meaning of the Social Security Act 1991)
    • an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa

 

The employees may be eligible even if they were stood down or re-hired at any time in the JobKeeper fortnight and a casual employee who did not qualify at 1 March because they had not worked for a period of 12 months may now satisfy that condition at 1 July (even if they were rehired).  Additionally you may also have a junior that has now turned 18 and will be eligible.

 

They are not eligible if they were in receipt of any of these payments during the JobKeeper fortnight

    • government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010
    • a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work.

 

Therefore if you have any additional eligible employees you will have to:

  • ask them to complete an Eligible Nomination Form (see attached) by Monday 24 August 2020 or asap, and
  • then ensure that they are paid a minimum of $1,500 gross per fortnight (PAYGW should be deducted) for the fortnights commencing 3 and 17 August  – these payments need to be made by 31 August 2020.
  • Advise us asap once the forms have been returned to you of any additional eligible employees so that we may advise the ATO or update your eligible employees yourself through the business portal or your MyGov.

 

As is the case now, your employees won’t be able to claim Jobseeker and Jobkeeper (but can switch from to the other).  They can’t claim Jobkeeper from another employee if they work for more than 1 business.

 

Below is a link to the ATO website with additional information.

https://www.ato.gov.au/general/jobkeeper-payment/employers/your-eligible-employees/