JobKeeper Update: 13 May 2020

We are aware of comments made by the Prime Minister regarding a ‘review’ of JobKeeper and media speculation that this might mean a wind back or early ending of the program. At this stage, that is all there is – a few comments and speculation. The rules as we currently understand them are still in place, and if you are eligible for JobKeeper, please keep making payments to your employees as required and making your monthly reports. For those not eligible yet, please keep testing your turnover as eligibility can begin at any stage during the JobKeeper period.

WLF remains committed to keeping you up to date. We will be sure to post updates as and when changes occur.

Update as at 4 May 2020

Late last week the government finally released the legislation that amends the JobKeeper rules in relation to the following:

• Employees aged under 18
• Notification requirements
• Service entities
• Charities
• Religious practitioners
• Alternative turnover tests

These changes are summarised for you below along with some other important information.

Important – make sure you have paid your employees for April by 8 May 2020, however you have until the end of May to enrol with the ATO for JobKeeper if you intend to claim for wages paid for JobKeeper fortnights in April and May.

You can view other important information about JobKeeper scheme here

Under 18s – must be independent

The amendments change the eligibility requirements for employees who were aged under 18 as at 1 March 2020.

• 16 & 17 year-olds that were full time students as at 1 March are no longer eligible for the JobKeeper payments unless they can demonstrate they are independent
• This change is effective from Monday 11 May 2020 (from the beginning of the 4^th JobKeeper fortnight)
• You must still pay all employees that were under 18 (as at 1 March 2020), that were eligible before these changes, for the first 3 JobKeeper fortnights
• You will be reimbursed for all payments made to under 18s relating to the first 3 JobKeeper fortnights that were otherwise eligible
• In broad terms, someone under 18 is considered independent if they can demonstrate that they:
  • have supported themselves through work with long term full or part-time employment for a two-year period;
  • are, or have been, married or are in a registered relationship;
  • have lived in a de facto relationship as a member of a couple for at least 12 months;
  • have, or have had, a dependent child;
  • are a job seeker assessed as unable to work over 30 hours a week;
  • are unable to live at home due to extreme circumstances;
  • have parents that are unable to support them;
  • are a refugee and their parents do not live in Australia;
  • are an orphan that has not been legally adopted; or
  • are in state care, including foster care.

Notification – ‘one in, all in’

Employers must ensure that all employees are provided with the opportunity to advise the employer that they agree to be nominated as an eligible employee.

• Employers must give written notice, to all eligible employees, that they are participating in the JobKeeper payments scheme
• Employers must also notify the Commissioner of all eligible employees that have nominated themselves as eligible and willing to participate in the scheme and receive the payments

• Timing
  • If you have already enrolled in the scheme, you need to provide the written notice to eligible employees by Friday 8 May
  • For other employers, you need to notify your eligible employees within 7 days of enrolling in the scheme

• You only need to provide written notice to eligible employees, which means you don’t need to notify the following:

• • Individuals that were not an employee of the entity as at 1 March 2020
  • Individuals did not meet the relevant residency requirements; or

• Individuals that were a casual employee other than a long-term casual employee.

• You can access the ATO’s standard form here for employees
• You can access the ATO’s standard form here for business participants (exc sole traders)
• Sole traders nominating themselves do not need to complete a nomination form
• You must also inform your employees of the steps they should take to give you back their completed form.
• You do not need to send this form to the ATO. You will, however, need to keep the completed version of this form (generally for five years)

Service entities – may now be eligible

The amendments provide a modified turnover test for certain group structures with an ‘employer entity’ that provides employee labour services to members of the group.

• Employer entities, that haven’t had a decline in turnover because they provide employee labour services to associated entities may now be eligible based on the decline in turnover of the non-employing members of the group
• Eligibility for employer entity
  • It must be a member of a consolidated group, consolidatable group or a GST group
  • The principal and predominant activity of the entity must be supplying other members of the group with employee labour services – consisting of the performance of work by individuals it employs
  • The entity must not be an operating entity of the group and provide no more than incidental services to third parties
• Modified turnover test
  • Instead of using the employer entity’s projected and actual GST turnovers, the sum of the projected and actual GST turnovers of each other member of the group is to be used

Charities

• Charities (except schools & universities) can choose to exclude government revenue/grants from the turnover test calculation
• The JobKeeper scheme has been extended to certain charities that undertake overseas aid and disaster relief

Religious practitioners

• The amendments now allow religious practitioners who are not employees, or may be employees but salary sacrifice everything, to be eligible employees.

Banks – can request confirmation of eligibility

• The ATO will be authorised to confirm an employer’s eligibility for JobKeeper to a bank where the employer has applied to the bank for a loan for initial JobKeeper payments.

Alternative turnover tests

The ATO also released alternative turnover testing methods for the following types of entities.

• Recently commenced business
• Recently acquired/disposed/restructured business
• Undergoing rapid growth
• Drought or other natural disaster
• Irregular turnover that is not cyclical
• Illness of sole trader or partner in a partnership

Please contact us if you need more information about these alternative tests.