While we wait for clarity over key aspects of the extension of JobKeeper past 27 September, an announcement by the Government on 7 August included changes to employee eligibility effective now in relation to the current JobKeeper program.
A revised employee eligibility test
- JobKeeper 1.0 required employees (or qualifying casuals) to be employed by the JobKeeper employer on 1 March 2020.
- In recognition that JobKeeper 1.0 has seen many employers employ additional staff, employees who are employed on 1 July are also be eligible to participate in the current scheme.
- This change is effective from 3 August 2020 based on Treasury Papers (legislation updates pending)
- Remember the ‘one in all in principle’ for participating employees. Employers cannot selectively exclude eligible employees from JobKeeper. Therefore if employees satisfy the new test then they need to be added to the participating employees for that employer.
Which employees might now be eligible?
Practically the following employees might now qualify for JobKeeper effective 3 August:
- Casuals who hit 12 month benchmark between 1 March and 1 July
- Permanent employees employed between 1 March and 1 July
- Permanent employee or long term casual who turned 18 in that period
Normal nomination and payment requirements apply and will need to be executed as soon as possible.
What you need to do now
Please review your employees to identify any new employees and reach out to your Maxim advisor if you need any support.