IMPORTANT CHANGES TO EMPLOYEE ELIGIBILITY FOR JOBKEEPER

It will be news to no one that JobKeeper has been extended to March. One aspect of the most recent JobKeeper announcements that has been overlooked is the changes to eligibility within the existing JobKeeper scheme. It is proposed that from 3 August 2020, the relevant date of employment moves from 1 March 2020 to 30 June 2020. This means that some employees who were previously ineligible for JobKeeper due to not being employed by the business as at 1 March 2020 (or for casuals not being employed by the business for 12 months or more as at 1 March 2020), JobKeeper eligibility may change. There are two aspects of this change that are currently uncertain;

1. This is not yet law, and parliament will not sit to vote on the changes until at least 24 August.
2. In order for employers to claim JobKeeper they must meet the wage condition, i.e., pay eligible employees at least $1,500 per JobKeeper fortnight. With this change proposed to take affect from JobKeeper fortnight 10, that would mean topping up eligible employees by 16 August; prior to the changes being legislated.

We assume that there will be a grace period to allow employers to back-date top up payments to eligible employees. As such, ID Accounting & Wealth Solutions suggests not making top up payments to those employees that are expected to be newly eligible just yet, and we would advise our clients to wait for the changes to become law.

If you have any questions about this or the extended JobKeeper Payment please get in touch.