Changes to Employee Eligibility for Jobkeeper 1.0

There has been a recent change to the classification of eligible employees for Jobkeeper 1.0. Some businesses will now have more eligible employees:

  • If a business has a full-time or part-time employee that commenced after 1 March 2020 up to 1 July 2020 then they will now be eligible for the remainder of Jobkeeper 1.0 that runs to the end of September 2020.  These employees previously haven’t been eligible for Jobkeeper 1.0 because they were not employed at 1 March 2020 when the program was first announced.
  • Long-term casual employees are now eligible if their 12-month employment anniversary occurred by 1 July 2020, rather than 1 March 2020. So, if you have casuals who had their 12-month employment anniversary between 2 March 2020 and 1 July 2020 they will now be eligible.

More detail, if this is relevant for your business:

  1. All new employees, who commenced in the period 1 March 2020 to 1 July 2020 and are eligible, must be included under the “one in – all in rule” that applies to Jobkeeper.
  2. These employees are eligible from the start of Fortnight 10 (3 August 2020).
  3. You will need to ensure that the number of eligible employees is updated when doing the August declaration (due by 14 September 2020). The employee nomination form needs to be received back from employees by Monday 24 August 2020. As with earlier declarations this form is not sent to the ATO but is retained on file by the employer.
  4. Eligible employees must be paid the minimum of $1,500 per fortnight as per the existing rules for all staff under Jobkeeper 1.0.
  5. New recipients may also be eligible for Jobkeeper 2.0.

Jobkeeper 2.0

Jobkeeper 2.0 is the six-month extension of Jobkeeper from 28th September to 28 March 2021, at reduced rates, and with different eligibility requirements.

Businesses will need to show actual figures demonstrating a 30% decline in turnover for small business and 15% for charities.

For 28 September 2020 to 3 January 2021:

  • Eligibility will be determined by comparing actual turnover in Quarter 1 2020 (Jul–Sept 2020) to actual turnover in Quarter 1 2019 (Jul-Sep 2019).
  • Payment rates will be $1,200 per fortnight for staff who worked 20+ hours per week in February 2020 or $750 per fortnight for staff who work less than 20 hours per week in February 2020.

From 4 January 2021 to 28 March 2021:

  • Eligibility will be determined by comparing actual turnover in Quarter 2 2020 (Oct- Dec 2020) to actual turnover in Quarter 2 2019 (Oct-Dec 2019).
  • Payment rates will be $1,000 per fortnight for staff who worked 20+ hours per week in February 2020 or $650 per fortnight for staff who worked less than 20 hours per week in February 2020

Advice and Questions

Our team is here to support you and your business. If you have questions about Jobkeeper or any other matters, please make contact with us by phone on (02) 9908 9888 or by email.