By Legislative Instrument on Friday 14 August 2020, the Treasurer provided the Amended Rules for the JobKeeper employee eligibility changes which were announced on 7 August 2020. While the changes do not affect JobKeeper subsidy rules for fortnights that end on or before 2 August 2020, the new rules which apply after that date must be considered by all employers currently enrolled in JobKeeper.
Employee Eligibility Changes
For fortnights beginning on or after 3 August 2020, qualifying employers will also be able to receive JobKeeper subsidy payments in respect of newly employed individuals that meet the eligibility criteria as at 1 July 2020 instead of the existing 1 March 2020 date. This results in more employees potentially being eligible, including individuals who:
- are permanent full-time or part-time and were employed between 2 March 2020 and 1 July 2020;
- are long term casuals (employed on a regular basis for more than 12 months) as at 1 July 2020;
- turned 18 years of age between 2 March 2020 and 1 July 2020;
- were terminated after 1 March 2020 and subsequently re-employed by 1 July 2020; and
- were employed as at 1 July 2020 but were previously ineligible because they had provided a nomination to a previous employer or had registered as an eligible business participant.
Employer Actions Needed
No action is required in respect of existing eligible employees but urgent action is required by employers in respect of potential new eligible employees for payroll fortnights from 3 August 2020:
- review for all potential new eligible employees (as above);
- urgently provide a nomination form to each of those new employees (see link here). Due to the “one-in all-in” rule an employer cannot choose which employees it wishes to nominate.
- obtain signed and completed nomination forms back from those new eligible employees by Friday 21 August 2020
- notify the ATO of the employees newly identified as eligible employees and of the first fortnight that JobKeeper is being claimed for these employees. This can either be done through your payroll system or ATO Online Services.
- by Monday 31 August 2020 ensure that all eligible new employees have been paid the minimum wage condition amount of $1,500 for each fortnight from 3 August 2020.
Further Amendments to the Rules to Issue
The further changes reflected in the JobKeeper 2.0 and JobKeeper 2.1 announcements by the Government on 21 July 2020 and 7 August 2020 will be included as separate amendments to the rules at a later time.