JOBKEEPER UPDATE 1.1.6 (or what feels like 3.14159265359)
Can't be bothered watching the video? Well read the deets below
BULLET POINT STYLE
An eligible Eligible Employee is now:
- Currently employed (including those stood down or re-hired)
- Was employed as at 1 July
- Was over 16 years of age at 1 July
- Employed either, Full time/Part Time
- If employed casually, must have been employed in a regular & systematic way for last 12 months
- They are an Australian citizen, perm visa or Subclass 444 Visa (NZ)
- They are a resident for tax purposes
- Not in receipt of Jobkeeper elsewhere
- They are not being paid maternity leave, dad/partner pay or workcover payments
Note the change to 1 July from the original eligibility date of 1 March
Download The New Eligible Employee Form
FOR THOSE WHO LOVE THE DETAIL
In a period that has seen Melbourne enter into stage 4 and force a raft of business to shut their doors, J-Fry announced a “tweak” to JobKeeper 1.0
“ … in addition, from 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.” – treasury.gov.au release 7 August 2020
A mere sentence within a six-page release, it took us 45 minutes to interpret, treasury a week to expand upon and the ATO another few days to give us a “please explain”.
At a high-level, any staff you employed on or before 1 July 2020 may now be eligible for JobKeeper from 3 August 2020.
At a detailed level, if you are an eligible business and participating in JobKeeper, you will need to assess all staff employed after 1 March 2020 or on or before 1 July 2020, assess their eligibility, provide then with a nomination form and if eligible, start them on JobKeeper from 3 August 2020. The ATO has given us until 31 August 2020 to make any back payments.
The ATO has also been keen to re-emphasise that JobKeeper is an “all-or-none” scheme; all eligible employees must be participating in JobKeeper or none. This rule applies to all eligible employees regardless of whether they qualify under the 1 Mach 2020 or 1 July 2020 date. If you are currently participating in the JobKeeper Payment Scheme, you must reassess.
It's a bit of a copy paste approach here
From a legislative perspective, the above changes literally equated to amendments to the effect of - Omit “March”, substitute “July”.
Under the above rules, individual are not excluded from re-nominating their eligibility as an employee with a new employer as long as the relevant criteria was met by 1 July 2020. For example, employed full time before 1 July 2020.
There are also limited circumstances whereby former eligible employees can be re-employed and preserve their eligibility status even after 1 July 2020. This is limited to those who ceased employment before 1 July 2020 and have not renominated with another qualifying entity.
As always if you're not sure, drop us a line or shoot me an email jason@illumin8.com.au