JobKeeper 3.0 Urgent Action Required
Further refinements of the JobKeeper system have been announced by the Federal Government and urgent action is now required for applicable businesses to gain the maximum benefit from these.
When the extension of the system beyond 27 September was announced, it was a requirement for continuing eligibility that the 30% decline in turnover had to be demonstrated for both the June 2020 and September 2020 quarters. This has now been modified so that only a 30% reduction in the September 2020 quarter needs to be demonstrated, compared to the September 2019 quarter. While details have not been released, a turnover decline can be measured against a different quarter to September 2019 if that quarter would not provide a true picture of the decline.
The other change, which will require action on the part of eligible businesses immediately, is that eligible employees can now be those who were employed by the business as from 1 July 2020. Previously, it was only those employees who were employed by the business as from 1 March 2020 who were eligible. To be considered, an employee must be full time; permanent part-time or a regular casual with the business since July 2019 and not in receipt of JobKeeper with another employer.
This change starts as from the JobKeeper fortnight commencing 3 August which ends on 16 August.
Businesses which have new employees since 1 March, who previously were not eligible for the JobKeeper subsidy, now have until this coming Sunday to do two things. The employee must sign the nomination form agreeing to participate in the system. The employer also needs to have paid them at least $1,500 gross in the fortnight which ends on 16 August.
As a matter of practicality, this means that employees should be provided with the nomination forms and any top-up payments made today or tomorrow.
Contact me at [email protected] if you need any specific help for your business.