Who is Eligible?
Under the new 1 July eligibility test, businesses must now consider a range of employees who may not have qualified under the previous eligibility rules. This could include:
- Casuals who did not previously meet the definition of a 'long term casual employee' by 1 March but now do.
- Employees who did not qualify due to their age or visa status but have since turned 16 or 17 and meet the independence and study conditions, or turned 18 years old, or obtained the necessary visa.
The 'one in all in' rule means that once an employer undertakes to receive JobKeeper payments, all eligible employees must be given the opportunity to nominate. As a result, it is incumbent upon employers currently receiving JobKeeper payments to assess those employees under the new eligibility rules and provide them with a nomination notice where required.
The eligibility of existing employees receiving JobKeeper is preserved if they are already covered based on the previous date of 1 March.
What is Required by Employers?
Employers will be required to determine if any additional employees qualify for JobKeeper payments and provide them with an employee nomination notice by 21 August 2020. These employees will likely be those that fall into the categories mentioned above or any full time or part time employees hired between 2 March and 1 July 2020.
The new rules come into effect for the fortnights commencing on 3 August and 17 August meaning new eligible employees will qualify for JobKeeper payments for the month of August essentially. Employers are required to meet the wage condition for all new eligible employees. For the month of August, this means those employees must be paid gross wages of $4,500 minimum, prior to 31 August, before JobKeeper payments for the same amount will be paid by the government.
As always our consultants at ELLIOTT+WEBB are happy to help with the process, or assist with any further queries that you may have as a result of this update. Please don't hesitate to contact the office on 08 6380 7800 or info@elliottwebb.com.au.
