Your Knowledge

Important JobKeeper Update
Action Required by Monday 24th August

On the 14th of August, the Treasurer registered a legislative instrument bringing into effect the previously announced changes that would allow certain staff employed between 1 March 2020 and 1 July 2020 to now be eligible for JobKeeper. If you recall from our previous updates earlier this year, this is an extension from the 1 March 2020 reference date which has determined employee eligibility for JobKeeper payments thus far.

This is welcomed news as it now means more employees will be eligible for JobKeeper. 

Who Does it Cover?

A range of employees who were previously ineligible will become eligible under the new 1 July 2020 employment test including:

• Individuals (other than casuals) employed after 1 March but before 1 July 2020 who meet the age and residency requirements;
• Casuals who did not meet the definition of a long term casual employee by 1 March 2020 but have become a long term casual employee by 1 July 2020. A reminder that a casual employee needs to be employed on a regular and systematic basis for at least 12 months leading up to 1 July 2020; 
• Employees who did not qualify on 1 March 2020 due to their age or visa status but have become 16 or 17 and meet the independence and study conditions, turned 18, or obtained the necessary visa by 1 July 2020.

The one-in all-in rule means that all of the employees that meet the above criteria will need to be provided with a nomination notice.

The new rules ensure that any new employee who meets the above criteria is eligible, even if they were previously nominated for JobKeeper under a different employer for JobKeeper payments as long as they have ceased their employment or business participation before 1 July 2020 with their former employer. 

Retesting of existing eligible employees is not required.

Important Actions

When will the JobKeeper payments start for the newly eligible?

JobKeeper 2.1

Revised Proposed Turnover Tests for JobKeeper 2.1

• For the first extension period to 3 January 2021, businesses and not-for profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the September 2020 quarter only relative to the corresponding quarter in 2019. 
• For the second extension period to 28 March 2021, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the December 2020 quarter only relative to the corresponding quarter in 2019.