Further Guidance on JobKeeper 2.0 Changes

Last week we advised of significant changes to the JobKeeper 2.0 scheme, being the removal of the June quarter from the decline in turnover test, and a new test date of 1 July, 2020 for eligible employees.

With regard to eligible employees, the effective date of this change will be 3 August 2020, so will have an impact on both the existing Jobkeeper scheme, and the extended scheme after 27 September 2020.

Employees who were not eligible to be included in the scheme previously as they failed the eligible employee tests on 1 March 2020, could become eligible if they satisfied these tests between 2 March 2020 and 1 July 2020.

Accordingly, employees who were previously ineligible could be included in the scheme if during the period 2 March 2020 – 1 July 2020 an employee:
• was hired on a full-time or part-time basis;
• became long-term casual employees (were employed for 12 months);
• became Australian citizens, permanent residents or holders of a Special Category Visa;
• turned 18; or
• were 16 or 17 and became either financially independent or ceased to be full-time students.

For Employers who had previously qualified for JobKeeper and have hired new employees since 1 March, or have employees who will now be eligible, this will represent an additional subsidy over and above their current JobKeeper receipts.

What needs to happen next

The 3 August 2020 effective date coincides with JobKeeper fortnight 10 in the existing scheme. Employers will have only until 16 August 2020 to ensure that any new eligible employees are included in the scheme. This will require the following:
• employee nomination notices to be obtained from these employees as soon as possible; and
• ensuring that employees have been paid $1,500 in respect of fortnight 10 or if not, any ‘top-up’ payments to $1,500 for that fortnight are made by 16 August 2020
• new employees will need to be added into the JobKeeper monthly reporting for August 2020 (due 14 September 2020)

The ATO has currently not provided any guidance on whether employers will be provided any extension to ensure that these requirements are met for new eligible employees for JobKeeper fortnight 10.

Given that these changes were only announced on Thursday last week, it would be reasonable for the ATO to grant such an extension. However, at this stage, it appears that these requirements will need to be met by the end of this week.

If you would like to discuss any of changes to the JobKeeper scheme, please do not hesitate to contact Brealey Quill Kenny, Canning Vale on 9256 277 or email admin@bqk.com.au


Read More
Changes to Superannuation Contribution CapsChanges to Concessional (Deductible) and Non-Concessional (Non-Deductible) Contribution Caps from 1 July 2024 From 1 July 2024, changes to concessional and non-concessional contribution caps will take effect, allowing individuals to contribute more to their superannuation....
Read More