What you need to know to ensure you can claim JobKeeper for your 1 July 2020 eligible employees
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On 14 August 2020, the Treasury released the Coronavirus Economic Response Package (Payment and Benefits) Amendment Rules (No. 7) 2020 which expanded the JobKeeper Scheme to allow employers the ability to nominate their 1 July 2020 eligible employees.
The 1 July eligibility test means that you may be able to claim the JobKeeper payment for employees that did not previously meet the eligibility requirements under the 1 March test. This may include employees that:
- were newly hired after 1 March and before 1 July;
- were already employed as at 1 July but ceased employment and have been re-hired prior to 3 August;
- were not considered long-term casuals as at 1 March but have been employed on a regular and systematic basis for a 12 month period as at 1 July;
- turned 16 years old between 1 March and 1 July and meet the eligibility requirements for those aged 16 or 17; or
- turned 18 years old between 1 March and 1 July where they did not previously meet the eligibility requirements for those aged 16 or 17.
Who is an eligible employee under the 1 July eligibility test?
An employee is an eligible employee under the 1 July eligibility test if the employee is employed by the employer (including those stood down or re-hired) at any time in the fortnight and the employee satisfies the following requirements on 1 July 2020:
a) The employee:
- was a non-casual employee of the employer (either full time, part time or fixed-term); or
- was a long-term casual employee (employed on a regular and systematic basis during the 12 month period immediately prior to 1 July 2020) of the employer and, at the time of providing the nomination notice, the employee was not a permanent employee of any other employer; and
b) The employee:
- was an Australian resident (within the meaning of section 7 of the Social Security Act 1991); or
- was a resident of Australia for the purposes of the Income Tax Assessment Act 1936 and was the holder of a special category visa referred to in the regulations under the Migration Act 1958 as a Subclass 444 (Special Category) visa; and
c) If the employee is aged 16 or 17 years on 1 July 2020, the employee was:
- independent within the meaning of section 1067A of the Social Security Act 1991; or
- not undertaking full-time study (within the meaning of the Social Security Act 1991).
The employee must also agree to be nominated by you (i.e. they must complete a nomination notice).
When is an employee excluded from being an eligible employee?
The employee is excluded from being an eligible employee of the employer for the fortnight if the employee is in receipt of:
- Government Paid Parental Leave and this payment overlaps with or includes the fortnight;
- Dad and Partner Pay at any time during the fortnight; or
- a payment in accordance with Australian workers’ compensation law for an employee’s total incapacity for work, and this payment overlaps with or includes the fortnight.
A long-term casual employee is also excluded from being an eligible employee if they are also employed in a permanent position with another employer. In these circumstances, the employee can only nominate their permanent employer for the JobKeeper scheme. The employee cannot nominate their casual employer, even if their permanent employer does not qualify or elects not to participate in the JobKeeper scheme.
What do I need to do to claim the JobKeeper payment for my 1 July eligible employees?
For the fortnights commencing 3 August 2020 and 17 August 2020, the ATO is allowing employers until 31 August 2020 to meet the wage condition for all new eligible employees included in the JobKeeper scheme under the 1 July eligibility test.
If you are enrolled as an employer to participate in the JobKeeper scheme, you must:
- Give written notice to your 1 July eligible employees that you have elected to participate in the JobKeeper scheme (if you haven’t already done so); and
- Provide a nomination notice to your new 1 July eligible employees; and
- State that the employee must give the employer the nomination notice if they agree to be nominated as an eligible employee.
The nomination notice can be downloaded from the ATO website
here. Please ensure you retain a copy of an employee’s completed nomination notice for at least five (5) years.
After completing the above steps, to meet the wage condition to be able to claim the JobKeeper payments for the fortnights commencing 3 August 2020 and 17 August 2020,
you must:
- Pay your eligible employees at least the minimum amount of $1,500 (before tax) for each fortnight you claim for, to receive the JobKeeper payment; and
- Make these payments to your eligible employees by 31 August 2020.
How does this impact my employees that I am already claiming the JobKeeper payments for?
These changes do not impact employees that were already considered eligible employees based on the 1 March requirements and that you are already claiming the JobKeeper payments for.
You are
not required to provide these employees with a new nomination notice if they have remained employed with you since 1 March 2020.
Where can I access more information?
For more information on these changes and the 1 July eligibility test, visit the ATO website on the following links:
https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/
https://www.ato.gov.au/General/JobKeeper-Payment/
Please contact the MTA NSW Employment Relations Team for any further enquiries on 02 9016 9000 or by emailing
eradvice@mtansw.com.au
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