JobKeeper now available to more employees

Australian employers have until the end of the month to satisfy JobKeeper eligibility changes announced on 1 July. 

In doing so, employers already enrolled in JobKeeper may be eligible to receive the JobKeeper payment for more of their employees.

Last Friday, Treasurer Josh Frydenberg brought into effect the change that would see staff employed by 1 July now eligible for JobKeeper, an extension from the previous 1 March reference date. 

Changes to JobKeeper have been made in response to the registration of the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No.7) 2020.

Importantly, employees who may have lost their job before 1 July 2020, can be nominated by a new employer. However, employees can still only be nominated by one employer at any given time.

“JobKeeper enrolments are still open. We encourage all businesses to review the eligibility criteria and if eligible, enrol in the program to start receiving JobKeeper payments. Employers already receiving JobKeeper are encouraged to review the new eligibility criteria against all employees and updated guidance is now available on our website,” said Deputy Commissioner James O’Halloran.

ATO guidance states that for the fortnights commencing on 3 and 17 August, the Tax Office will provide employers until 31 August to meet the wage condition for all new eligible employees under the 1 July eligibility test.

Employers can commence claiming for the JobKeeper reimbursement for new eligible employees from 1 September when they can lodge their August monthly declaration claim. 

“The ATO is here to support those doing it tough and knows how vital the JobKeeper payment is to the community. We have provided more than $37 billion in JobKeeper payments to around 989,000 businesses and not-for-profits. This means around 3.6 million individuals are now covered by JobKeeper,” said O’Halloran.

“We are committed to providing the community with the help they need through this difficult period, and have a range of practical support options available.” 

These changes will not impact JobKeeper payments until after 28 September 2020 and guidance will be provided as it comes to hand.

Individual, sole trader and small or medium businesses that are facing difficulty in meeting their tax and super obligations because of COVID-19, can call the ATO’s Emergency Support Infoline on 1800 806 218 to discuss tailored support options.

Further information to support employers with JobKeeper payments can be found on ato.gov.au/JobKeeper.

In further JobKeeper news, the Federal opposition has called on the Morrison government to reverse its plan to taper the JobKeeper wage subsidy in September.

Labor has cited the deterioration of economic conditions to rethink the tapering of JobKeeper. 

“The extension of JobKeeper was welcome, but it makes sense for the tapering to be reconsidered now, given it was announced just as the situation in Victoria was deteriorating,” Shadow Treasurer Jim Chalmers said.

According to Chalmers, the government should consider the impact of reducing the wages subsidy given the prolonged second wave of COVID-19 infections in Victoria and the risks of an outbreak in New South Wales.

“Winding back JobKeeper will remove a fair bit of support from the economy, which is more alarming in the absence of any comprehensive jobs plan.

“If they are winding back JobKeeper, and the economy is not recovering as fast as we like, then what is going to fill the hole? Economists and peak groups we speak to are increasingly worried about this new September cliff.

“The Reserve Bank and others are already warning that withdrawing support too soon risks compromising recovery, and we can’t afford a generation of lost and discarded workers left out and left behind.”