We have already talked about JobKeeper 2.0 but the latest announcements made on Friday mean we now need to revisit JobKeeper 1.0 to ensure your business stays eligible and to maximise your JobKeeper entitlements.
New 1 July 2020 Eligibility Date
The date for assessing eligible employees has [effective from 3 August 2020] changed from 1 March 2020 to 1 July 2020. This means you may now have more employees eligible that you can receive JobKeeper payments on. This will particularly affect the following groups of employees:
- Any new employees as at 1 July 2020 that were not employed as at 1 March 2020 [full-time, part-time or fixed-term employees].
- Any long-term casual employees that meets the 12–month test between 1 March 2020 and 1 July 2020 [still also need to be employed on a regular and systematic basis and not a permanent employee of any other employer].
- Any employees that turned 18 years of age between 1 March 2020 and 1 July 2020 [if employees were 16 or 17 they can also still qualify if considered ‘independent’ or not undertaking full time study].
- Any employees who became an Australian resident under the Social Security Act definition between 1 March 2020 and 1 July 2020.
- Any employees who between 1 March 2020 and 1 July 2020 became an Australian resident for income tax purposes that also holds a Subclass 444 [Special Category] visa.
One in, All in Rule
If you have any employees that meet the new eligibility requirements as at 1 July 2020, you MUST now add them to your JobKeeper declarations to remain eligible for any JobKeeper payments. Under the one-in, all-in rule you must provide JobKeeper to all employees that meet the requirements and have provided the necessary nomination forms.
Please note that the above changes DO NOT require you to retest the required drop in turnover. If you currently qualify for JobKeeper, you will continue to qualify until 28 September with this round of changes, you just need to update to include any newly eligible employees.
3 Fortnight Period
Remember August is a 3–fortnight period for JobKeeper purposes and not a typical 2–fortnight period. This means you need to have paid your employees at least $4,500 rather than the usual $3,000.
For more information on the 3–fortnight period click here.
New Nomination Forms:
If you have any newly eligible employees [as detailed above] you need to get them to complete a nomination form as soon as possible to acknowledge JobKeeper is being claimed by the employer and that they are not claiming JobKeeper from any other employer.
For a link to the new nomination form, click here.
Payment rates will change over the 6 month period that the next round of JobKeeper will cover.
Please note that the other announcements made in July around the extension of JobKeeper past 28 September 2020 and reducing the amounts to $1,200 fortnight, are separate to these changes relating to the new eligibility date of 1 July 2020.
For more detail on the changes to JobKeeper after 28 September 2020 click here.
Any businesses currently eligible for JobKeeper [or have become eligible after 3 August 2020] must now do the following:
- Review if you have any newly eligible employees
- Provide all newly eligible employees with the new nomination form and have them complete and return
- Check you have paid the minimum amount to all employees, including the newly eligible employees, and make top-up payments where necessary by 31 August 2020 [it could be as much as $4,500 for the month]
- Include newly eligible employees within your monthly declaration for August fortnights [which are due 14 September 2020]
If you have any questions, or need assistance with reviewing your JobKeeper eligibility requirements, please drop us a line at firstname.lastname@example.org or 1300BDEPOT and ask us about our array of business services.
At our next Calm Covid Convo Rebecca Mihalic and John Knight will help you understand how to stay eligible and maximize your JobKeeper entitlements.