On 21 July 2020, the Federal Government announced the extension of JobKeeper payments to assist in phasing out parts of the Government’s economic support.
As part of the extension, the Government has made changes to the eligibility thresholds for employers and employees qualifying for JobKeeper 2.0.
These changes include easing the turnover threshold for businesses qualifying for the extended JobKeeper scheme and expanding the eligibility criteria for employees under the existing scheme and the extension.
The JobKeeper extension is expected to run from 28 September 2020 to 28 March 2021.
The Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 7) 2020 has been registered giving effect to these changes.
Easing of turnover tests
Businesses will now only need to show that they suffered a decline in turnover for the September quarter to be eligible for the first extension of the scheme (from 28 September 2020 to 2 January 2021).
This change also applies to the second extension which begins on 3 January 2021. Businesses only need to have experienced a decline in turnover for the December quarter to qualify for the January extension of JobKeeper (from 3 January 2021 to 28 March 2021).
The changes are designed to support businesses that may have seen some recovery in revenues for April, May and June, before the latest restrictions and border closures took effect, which would have made them ineligible for the extended JobKeeper scheme.
Increased employee eligibility
The Government also announced that from 3 August the relevant date of employment for assessing employees’ eligibility for JobKeeper will be 1 July 2020, instead of the previously announced deadline of 1 March 2020.
This means from the JobKeeper fortnight commencing 3 August, employees who have been employed since at least 1 July 2020 will now be eligible for JobKeeper payments under the existing scheme and the extension.
The change also includes casuals who were ineligible on 1 March 2020 but have since been engaged for a 12-month period as of 1 July 2020.
Next steps
The extension of the relevant employment date means that an existing JobKeeper employer will need to review their employee records to identify any ‘newly eligible’ employees.
Newly eligible employees are employees who did not satisfy the basic employee eligibility criteria at 1 March 2020 but do satisfy the criteria under the changed rules (including re-qualifying and re-nominating employees).
Employers have until Friday 21 August to provide ‘newly eligible’ employees with a nomination notice form and make necessary ‘top up’ payments by 31 August 2020.
Employers should start paying new eligible employees a minimum of $1,500 per fortnight from the JobKeeper which commenced on 3 August.
While these changes involve some administrative requirements and careful consideration to ensure you meet the upcoming deadlines, it is important you assess your workforce and your and avoid facing penalties.
More information about the extended JobKeeper scheme can be found on the ATO website.
AREEA can provide support and advice on JobKeeper process should your business meet the eligibility requirements.
Contact AREEA’s workplace consulting team for advice and support on JobKeeper.
