JOBKEEPER RULES UPDATED – JULY 1 ELIGIBILITY NOW IN EFFECT

The Australian government has moved to enact previously announced changes to the JobKeeper system.

Part-time and full-time employees whose employment began after March 1 but on or before July 1 may now be eligible for JobKeeper from August 3 (JobKeeper fortnight 10). For fortnights commencing August 3 and August 17, the Tax Office will provide employers until August 31 to enroll and where necessary, top up all newly eligible employees. However, JobKeeper employee nomination notices must be completed by this Friday, August 21.

Businesses should now consider a range of employees who may now be eligible under the new test. This could include casuals who did not meet the definition of a long-term casual employee by 1 March but have since become long-term casual employees by 1 July, or employees who did not qualify on 1 March due to their age or visa status but have since become 16 or 17 and meet the independence and study conditions, or 18 years, or obtained the necessary visa. The one in, all in rule means that any full-time or part-time employee hired between March 2 and July 1 2020 who meets the age and residency requirements, or casuals who also meet the 12-month condition to be a long-term casual employee, will need to be provided with a nomination notice.

Changes to the JobKeeper rules also now allow individuals who have nominated as an eligible employee or eligible business participant with one entity to re-nominate as an eligible employee of another entity in limited circumstances. To re-nominate, the individual must have ceased their employment or business participation with the first entity before July 1, and commenced their employment with the new entity by July 1.

Note that this change applies only to employees. Businesses and business participants that were ineligible for JobKeeper due to not being in business on March 1, 2020 are still ineligible.

If you are in any doubt as to how these changes affect you, please contact us as soon as possible to discuss your position.