Amendments to the JobKeeper 1.0 Rules were released on Friday 14th August. New rules allow businesses to claim the subsidy in respect of new employees who were on the books as at 1 July 2020. The changes apply to JobKeeper fortnights beginning on or after 3 August 2020.
What has changed?
JobKeeper fortnights commencing on or after 3 August 2020
An update to the definition of ‘eligible employee’, means the date you are required to test an employee’s eligibility is now 1 July 2020 (previously 1 March 2020).
The following employees are eligible for JobKeeper if they are employed by you (including those stood down or re-hired) at any time in the JobKeeper fortnight if:
- the employee was employed by you at 1 July 2020;
- full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 July 2020)
- the employee was at least 18 years of age at 1 July 2020 (note, employees who are 16 or 17 years of age may be eligible if they were independent or not studying full time on 1 July 2020
- the employee meets the residency requirements at 1 July 2020 as follows:
- must be an Australian citizen / permanent resident or hold a visa where they are considered a resident under section 7 of the Social Security Act; or
- be a holder of a Subclass 444 visa and be a resident of Australia for income tax purposes.
- the employee is;
- not in receipt of a JobKeeper Payment from another employer
- not in receipt of parental leave pay or dad or partner pay and
- not totally incapacitated and receiving worker’s compensation during the relevant period.
This expansion now accounts for (but is not limited to) situations where:
- an employee has been hired between 2 March 2020 and 1 July 2020;
- an employee who satisfied either the 1 March or 1 July 2020 requirement who has been made redundant/terminated and then re-hired;
- an employee has turned 18 years of age between 2 March 2020 and 1 July 2020; and
- a casual employee who has been employed on a regular or systematic basis for at least 12 months at 1 July 2020.
Note: If you have employees who were eligible under the previous 1 March 2020 requirement, the changes made to the 1 March 2020 date will not impact their eligibility and you will continue to receive JobKeeper payments for them provided their circumstances remain the same.
What do you need to do next?
- Provide all employees who are not currently nominated by you with a nomination form by the 24 August 2020.Nomination forms can be accessed here: https://www.ato.gov.au/assets/0/104/300/362/561f35fc-a8aa-46d2-8c76-e334d24baaad.pdfPlease notify your employees that they should not complete this form if:
- they have already completed the notice for another employer, or agreed to be a business participant for another entity receiving a JobKeeper payment, unless:
- they stopped being an employee of the previous employer.
- at the time they agree to be nominated by you, they have not been rehired by their previous employer.
- they do not meet all other requirements to be an eligible employee for JobKeeper fortnights starting on or after 3 August 2020 (including the 1 July requirements).
- they are receiving Government parental leave pay, Dad and partner pay, or a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work.
Note: You are not required to fulfil the nomination requirements again for those employees who have previously been nominated by you.
- they have already completed the notice for another employer, or agreed to be a business participant for another entity receiving a JobKeeper payment, unless:
- You will be required to meet the minimum wage condition (and pay any ‘top-ups’ if necessary) for JobKeeper fortnights commencing 3 August 2020 and 17 August 2020 by 31 August 2020.Note: This extension is only available for “new” employees eligible due to the changes – for all other employees currently registered under the Scheme, please continue to make the payments by the end of the JobKeeper fortnight.
How much will you receive for employees in August?
- For any “new” employees now eligible for the JobKeeper payments, you will receive $3,000 for the month of August, based on eligibility for the two fortnights (beginning 3 August 2020 and 17 August 2020).
- For employees already registered under the JobKeeper Scheme, you will receive $4,500 to account for the three JobKeeper fortnights falling in August 2020.
KEY DATES
- Enrolment – you must enrol by 31 August 2020
- Nomination requirements – you must provide nomination forms to your employees by 24 August 2020
- Minimum wage condition – for any employees
- who were eligible under the 1 March 2020 requirements, you are required to meet the minimum wage condition (and pay any ‘top-ups’ if required) by the end of the JobKeeper fortnight.
- who are now eligible under the 1 July 2020 requirements, you will be required to meet the minimum wage condition (and paying any ‘top-ups’ if required) for JobKeeper fortnights commencing 3 August 2020 and 17 August 2020 by 31 August 2020.
- Monthly declaration – you must submit your JobKeeper declaration for the month of August by 14 September 2020.