On Friday 14th August 2020, the Treasurer released updated JobKeeper Rules in regards to a new test date for eligible employees from 3 August 2020 onwards.
Under the original JobKeeper rules, an employee needed to have been employed by the entity as at 1 March 2020.
The new rules allow that the relevant test date is now 1 July 2020 applying from 3 August 2020 onwards. Employees who met the conditions at 1 March 2020 will continue to be eligible assuming they are still employed by the entity etc.
Changes to JobKeeper - What does this mean?
- Someone commencing employment with an entity after 1 March 2020 but before 1 July 2020 can potentially be eligible for JobKeeper from 3 August 2020 onwards, assuming all other conditions are met.
- Casuals who had not been employed for at least 12 months as at 1 March 2020 can potentially be eligible for JobKeeper if they have now been employed on a regular and systematic basis for at least 12 months as at 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 subsequently met those conditions on 1 July 2020.
- An individual 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 where they 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 and they meet the conditions to be treated as an eligible employee of the new employer at 1 July 2020.
Employers need to ensure that they identify all additional employees who could be eligible for JobKeeper so that they comply with the “one in, all in” principle and confirm with them that they meet the nomination requirements.
Top up payments to be made by 31st August
As this change was relevant for the JobKeeper fortnights starting on 3 August 2020 and 17 August 2020, there may be employees who did not met the payment condition to pay $1,500 per fortnight for these newly eligible employees.
As such, the ATO has allowed that top up payments can be made for this fortnight, as long as it is paid before 31 August 2020.
What do you need to do?
- Review your employee details for new employees Or those not previously eligible to see if now meet the criteria
- Ensure they complete and sign the JobKeeper Employee Nomination Notice
- Check that they have been paid at least $1,500 for the fortnight between 3 and 17 August 2020
- Make any required top up payments by the 31 August 2020.