Your Knowledge


Important JobKeeper Update
Action Required by Monday 24th August

On the 14th of August, the Treasurer registered a legislative instrument bringing into effect the previously announced changes that would allow certain staff employed between 1 March 2020 and 1 July 2020 to now be eligible for JobKeeper. If you recall from our previous updates earlier this year, this is an extension from the 1 March 2020 reference date which has determined employee eligibility for JobKeeper payments thus far.

This is welcomed news as it now means more employees will be eligible for JobKeeper. 

Who Does it Cover?

A range of employees who were previously ineligible will become eligible under the new 1 July 2020 employment test including:

  • Individuals (other than casuals) employed after 1 March but before 1 July 2020 who meet the age and residency requirements;
  • Casuals who did not meet the definition of a long term casual employee by 1 March 2020 but have become a long term casual employee by 1 July 2020. A reminder that a casual employee needs to be employed on a regular and systematic basis for at least 12 months leading up to 1 July 2020; 
  • Employees who did not qualify on 1 March 2020 due to their age or visa status but have become 16 or 17 and meet the independence and study conditions, turned 18, or obtained the necessary visa by 1 July 2020.

The one-in all-in rule means that all of the employees that meet the above criteria will need to be provided with a nomination notice.

The new rules ensure that any new employee who meets the above criteria is eligible, even if they were previously nominated for JobKeeper under a different employer for JobKeeper payments as long as they have ceased their employment or business participation before 1 July 2020 with their former employer. 

Retesting of existing eligible employees is not required.

Important Actions

1. Identify all additional employees who could be eligible for JobKeeper to ensure that you comply with the "one in, all in" rule immediately.

2. All newly eligible employees need to return a signed Employee Nomination Form by Monday 24th August to their employer. The form can be accessed here - ATO Employee Nomination Form 

3. All newly eligible employees need to meet the wage condition by ensuring at least $1,500 (gross) is paid for each fortnight ending 16 and 30 August respectively. This has to be paid by the 31 August 2020.

Entities also have until 31 August 2020 if they are enrolling in JobKeeper for the first time based on the 1 July 2020 employment test.

When will the JobKeeper payments start for the newly eligible?

JobKeeper payments for newly eligible employees begins with the fortnight ending 16 August (Fortnight 10).

As there are three (3) JobKeeper fortnights in the month of August, employers will receive 3 x $1,500 payments for existing eligible employees and will also receive 2 x $1,500 for any newly eligible employees.

We note that  August is the only month that has 3 JobKeeper fortnights. If you have been processing your payroll on a monthly basis and paying the minimum $3,000 gross per month per employee, you must ensure that $4,500 (gross) is paid as the minimum for this month only. Please contact us if you would like to clarify your payroll requirements for August, as it is a critical point for being eligible in August only. 

JobKeeper 2.1

Further to our previous update on 23 July 2020 (see announcement here), the Government has since announced on 7 August 2020 that it will wind back the eligibility criteria for the second phase of the JobKeeper Scheme for the extended period from 28 September 2020 to 28 March 2021 (now referred to as JobKeeper 2.1). 

Revised Proposed Turnover Tests for JobKeeper 2.1

  • For the first extension period to 3 January 2021, businesses and not-for profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the September 2020 quarter only relative to the corresponding quarter in 2019. 
  • For the second extension period to 28 March 2021, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the December 2020 quarter only relative to the corresponding quarter in 2019. 
The latest JobKeeper Payment changes are broadly summarised below.
From 3 August to 27 September 2020 (Existing Regime)
From 28 September 2020 to 3 January 2021
From 4 January 2021 to 28 March 2021
No legislation has been introduced for the JobKeeper 2.1 Package. We will provide you with further updates once we receive this guidance. 
As always, please get in touch with our office should you wish to discuss any of the content further.

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