JobKeeper – Update to employee eligibility

Keeping your business up to date

The ATO has implemented further changes to the JobKeeper employee eligibility rules. This adjustment to the criteria now means employers may be able to receive the JobKeeper payment for more of their employees.

The new date for assessing employee eligibility is the 1^st July 2020. Employers will need to ensure they are meeting the minimum $1500 per fortnight payments from JobKeeper Fortnight 10 (Week Commencing 3^rd August)

It is estimated that 989,000 businesses and not-for-profits have registered for JobKeeper, with more than $37b in payments filtering through and over 3.5m Australians covered under the scheme.

Below is a guide to ensuring your business is up to date

• From the 3^rd of August 2020, the eligible employee test has been extended to include individuals who were employed on the 1^st July 2020
• JobKeeper was originally due to run until the 27^th September 2020, but will now continue to be available to eligible businesses for a further 2 quarters, until the 28^th March 2021
• Employers will need to reassess their eligibility for each of the extended JobKeeper quarters and:
  • demonstrate that they have met the relevant decline in turnover test (actual GST turnover) in both the June 2020 & September 2020 quarters to be eligible for the JobKeeper Payment from the 28^th September 2020 to the 3^rd January 2021
  • demonstrate that they have met the relevant decline in turnover test (actual GST turnover) in the June 2020, September 2020 and December 2020 quarters to be eligible for the JobKeeper Payment from the 4^th January 2021 to the 28^th March 2021
• The fortnightly payment rate will reduce to:
  • $1200 per fortnight from the 28^th September 2020
  • $1000 per fortnight from the 4^th January 2021
• For all employees engaged for less than 20 hours per week, the fortnightly payment rate will reduce to:
  • $750 per fortnight from the 28^th September 2020
  • $650 per fortnight from the 4^th January 2021

Don’t hesitate to reach out to one of our team for advice specific to your business.

Sources: ATO.gov.au Treasury.gov.au