News Flash – Job Keeper Update

20 August 2020

IMPORTANT CHANGES TO ELIGIBILITY AND APPROACHING DEADLINES 

Employers top five must do actions
  1. Businesses participating in the existing JobKeeper scheme must reconsider the eligibility of their employees in order to identify those employees now brought into the existing JobKeeper Scheme under the new 1 July 2020 eligibility test.
     
  2. Familiarise yourself with the revised employee eligibility criteria (see below) which applies to the current JobKeeper Fortnight 10 which started on 3 August 2020
     
  3. Where additional employees are identified, obtain any new Employee Nomination Notices by this Friday 21 August 2020.
     
  4. Make sure you meet the $1,500 payment requirement for these employees by 31 August 2020 in order to satisfy the wage condition for the JobKeeper fortnights commencing on August 3 and August 17 respectively.
     
  5. Notify the Commissioner in the approved form, of information about the newly nominated individuals and their nomination.
Key takeaways
  • Failure to obtain the employee nomination notice and meet the wage condition in respect to newly identified employee, will mean that you will be in breach of the one in, all in principle and the JobKeeper minimum wage condition under the Fair Work Act and may mean that the business’ eligibility for the scheme is lost (i.e. for all employees, not just the newly identified ones).
     
  • You are not required to retest the eligibility of existing employees already covered by the JobKeeper Scheme (i.e. based on the 1 March reference date) and are not required to obtain new employee nomination forms for these employees
Recap of employee eligibility

Additional employees are now eligible for the JobKeeper payments under both the existing and extended JobKeeper schemes where they:

  • are currently employed by an eligible employer (including if they were stood down or rehired).
     
  • were for the eligible employer (or another entity in their wholly-owned group) either: – a full-time, part-time or fixed-term employee at 1 July 2020; or
    • a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent employee of any other employer.
    • were aged 18 years or older at 1 July 2020 (if you were 16 or 17 you can also qualify if you are independent or not undertaking full time study).
       
  • were either:
    • an Australian resident (within the meaning of the Social Security Act 1991); or
    • an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at 1 July 2020.
    • were not 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; or 
      • a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work.
Where we can assist you

If you would like to discuss any matters in this newsletter in further detail, please do not hesitate to contact your Cooper Partners Engagement Team.

This newsletter is current as of 20 August 2020, however, please note that announcements and changes are being made by the Government and the ATO regularly, and we expect that the tax and business-related responses will continue to evolve.  Before acting upon the content of this newsletter, please contact us to discuss how the above applies to your specific circumstances.

This information is general advice only and neither purports, nor is intended to be advice on any particular matter.
No responsibility can be accepted for those who act on the contents of this publication without first contacting us and obtaining specific advice.
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