2 Posts

Businesses now able to claim JobKeeper for new employees

Posted on August 18, 2020 by Tom Francis

On August 14th Treasurer Josh Frydenberg announced further changes to the JobKeeper rules to allow businesses to claim the subsidy in respect of new employees who were employed on or before 1 July 2020 and are not currently nominated for JobKeeper by another entity.

The changes apply to JobKeeper fortnights beginning on or after 3 August 2020.

Under the changes, the reference date for assessing which employees are eligible for the JobKeeper payment is now 1 July 2020 rather than 1 March 2020.

The ATO has confirmed that for fortnights commencing on 3 August and 17 August 2020, employers will have until 31 August 2020 to meet the wage condition for all new eligible employees who are now included in the JobKeeper scheme under the 1 July 2020 eligibility test.

This means employers will have until 31 August to ensure any new employees at 1 July have received at least $3,000 of wages. The wage condition remains $1,500 per fortnight until JobKeeper 1.0 ends on 28th September. The ATO has warned that employers will lose JobKeeper if this catch up payment isn’t made by 31 August under the ‘one in, all in’ rule.

It is important to remember the one in all in rule which states If you decide to participate in the JobKeeper payment scheme, you must nominate all your eligible employees which now includes those employed at 1 July. To satisfy this, all new employees at 1 July have to be registered with JobKeeper and the employer’s payroll system must have been updated to reflect this by this Friday 21st August.

Another very positive change relates to the ability for an employee to re-nominate with a new employer (which was previously not allowed). Broadly, if an individual was a 1 March 2020 an employee of another entity but is not employed by that entity at any time from the start of 1 July 2020, then the individual is now permitted to give a nomination notice to a new employer. The same applies for eligible business participants, as applicable.

If any of the new relief packages impact you or to discuss eligibility and application, please contact one of our Team on (08) 9316 7000.

We are here to help

Trying to think of everything you need to do keep your team and customers safe and healthy right now as well as run your business is tough.

We will continue to keep you informed of all government stimulus and other measures and how they apply to your business and are here at any time of the day to give you advice on your business continuity plans and cashflow.

Please call us on (08) 9316 7000 if there is anything we can do to help you.

If you need us outside of work hours, please call one of our Directors:

Andrew Sullivan on 0407 680 698
Chris Grieve on 0417 967 539
Ashley Dawson on 0438 014 318

We are here for you and together we will all get through this.

We will all come out the other side with more resilience, more compassion and more empathy.  Until we do, please look out for each other.

JobKeeper 3.0

Posted on August 10, 2020 by Ashley Dawson

On 7 August 2020, the Government announced adjustments to JobKeeper 2.0 to expand the eligibility criteria, now referred to as ‘JobKeeper 3.0’, primarily in response to the COVID-19 restrictions recently imposed in Victoria.

As a refresher, announced in JobKeeper 2.0 on 21 July 2020 were two Extension Periods to the package, as follows:

  • Extension Period 1 – which covers the seven new JobKeeper fortnights that commence on 28 September 2020 and end on 3 January 2021; and
  • Extension Period 2 – which covers the six new JobKeeper fortnights that commence on 4 January 2021 and end on 28 March 2021

The adjustments contained within JobKeeper 3.0 will apply Australia wide, and the amendments include the following: 

Adjustments to employee eligibility – From 3 August 2020, the relevant date of employment (which is used to determine an employee’s eligibility to JobKeeper) will move from 1 March 2020 to 1 July 2020.  This is designed to increase employee eligibility for both the existing JobKeeper scheme, as well as for the new extension periods from 28 September 2020.

Casual employees will still be required to have been employed on a regular and systematic basis for a minimum of 12 months, with no changes being made to the original provisions for this.

Adjustments to the ‘Decline in Turnover Test’ – To qualify for JobKeeper in the extension periods, businesses will now only have to demonstrate that their actual GST turnovers have significantly decreased in the previous quarter under JobKeeper 3.0.  For these purposes, the applicable rate of decline in turnover required to qualify for JobKeeper 3.0 is determined in accordance with the existing rules (i.e., 50% for entities with an aggregated turnover of more than $1 billion, 30% for entities with an aggregated turnover of $1 billion or less and 15% for ACNC-registered charities).  

Specifically, to be eligible for the JobKeeper Extension Period 1 (i.e., from 28 September 2020 to 3 January 2021), businesses only need to demonstrate a significant decline in turnover in the September 2020 quarter (whereas under the previously announced JobKeeper 2.0, they would have been required to show that they had suffered a significant decline in turnover in both the June and September 2020 quarters).

To be eligible for JobKeeper Extension Period 2 (i.e., from 4 January 2021 to 28 March 2021) businesses only need to demonstrate a significant decline in turnover in the December 2020 quarter (whereas under the previously announced JobKeeper 2.0, they would have been required to show that they had suffered a significant decline in turnover in each of the June, September and December 2020 quarters).

The payment rate system originally proposed in JobKeeper 2.0 will remain, with the full rate of payment decreasing from $1,500 to $1,200 per fortnight from 28 September 2020 and then to $1,000 per fortnight from 4 January 2021.  The proposed reduced rates (being $750 from 28 September 2020 and $650 from 4 January 2021) will also remain for employees and business participants who worked fewer than 20 hours per week in the relevant period.

If any of the new relief packages impact you or to discuss eligibility and application, please contact one of our Team on (08) 9316 7000.

We are here to help

Trying to think of everything you need to do keep your team and customers safe and healthy right now as well as run your business is tough.

We will continue to keep you informed of all government stimulus and other measures and how they apply to your business and are here at any time of the day to give you advice on your business continuity plans and cashflow.

Please call us on (08) 9316 7000 if there is anything we can do to help you.

If you need us outside of work hours, please call one of our Directors:

Andrew Sullivan on 0407 680 698
Chris Grieve on 0417 967 539
Ashley Dawson on 0438 014 318

We are here for you and together we will all get through this.

We will all come out the other side with more resilience, more compassion and more empathy.  Until we do, please look out for each other.

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