Update: A must read, action required
The Treasurer, with powers available under the JobKeeper legislation, has brought in a change that would see employees employed at 1 July, now eligible for JobKeeper. This is an extension on the previous 1 March 2020 reference date.
If you are currently enrolled for Jobkeeper 1.0 ending 30th September 2020, please read on…
If all employees of your business are currently included in the Jobkeeper program, then this change may not impact you and action may not be required.
However, if you have current employees that are not covered by the current Jobkeeper program, please continue reading.
At the time of implementation of the Jobkeeper program, there were 2 eligibility tests, one for the business and one for employees. It was a requirement that both the business and the employee met the eligibility criteria to be entitled to JobKeeper payments.
Many employees failed the entitlement test and were not eligible for Jobkeeper due to insufficient service periods to 1st of March 2020, normally casual employees and non-residents but there were other examples.
However (as mentioned above) the Treasurer has revised the employee eligibility test date to 1st of July 2020 and accordingly, some employees who were originally ineligible (because of the 1 March 2020 test date) will now be eligible from 3rd August 2020 (NOT backdated to 30th March, the commencement of the program).
If you did have employees that were ineligible in the first phase but may now pass the test, then it is mandatory to offer them the opportunity to participate by providing them with this Nomination Notice.
This notice must be provided to them by 24 August 2020 and supply of the notice is a mandatory requirement under the “one in all in principle”.
The onus rests with the employer to consider and identify any new eligible employees and then appropriately supply a notice. (No supply is required where employees continue to be ineligible).
The Australian Taxation Office (ATO) will allow employers until 31 August 2020 to meet the wage condition for all new eligible employees under the revised employee eligibility test.
Please do not hesitate to contact your Rogerson Kenny accountant should you require assistance with this matter, 03 9802 2533.
If you are not currently enrolled for Jobkeeper 1.0 ending 30th September 2020, but your business has since suffered, please read on..
When the Jobkeeper program was first announced in late March 2020 most businesses determined their entitlement and enrolled in early April 2020 so they could participate from the program’s inception.
Many businesses were not eligible at that time due to their turnover not having fallen by the requisite amount, in most cases 30%.
However, with the 2nd lockdown in Victoria starting with Stage 3 on 7 July 2020 and with the Stage 4 lockdown, some businesses that were ineligible in the early stages of Jobkeeper may now be eligible.
It remains a prerequisite to participate in Jobkeeper that employers must still have been carrying on business in Australia (or have been a non-profit body pursuing its objectives principally in Australia) on 1 March 2020.
Late enrollment may still be possible where there has been a fall in turnover greater than the requisite amount, in most cases 30%, in one of the following periods:
- estimated August 2020 compared with August 2019
- estimated September 2020 compared with September 2019
- estimated 3 month period ending 30 September 2020 compared with actual 3 month period ending 30 September 2019
The assessment is not simple and close attention will need to be paid to the calculation based i.e. whether it is cash or accrual and ensuring there is a reasonable basis for making estimates.
It is important to note that the Jobkeeper payments cannot be backdated but would commence from the revised enrollment date.
We are encouraging all businesses that may have failed the eligibility test in the early stages of Jobkeeper to re-examine whether they may now be eligible and therefore a candidate for late enrollment.
If you would like to have a discussion to determine your eligibility, please contact your Rogerson Kenny accountant, 03 9802 2533.