Important JobKeeper Update for Employers – Introduction of the 1 July Employment Test

What has changed?

On the 14^th of August the Government expanded JobKeeper eligibility which may now enable previously ineligible employees to qualify for the JobKeeper scheme. An additional ‘1 July 2020 employment test’ has been introduced that, if satisfied, will enable previously ineligible employees to receive JobKeeper payments from fortnights commencing 3^rd August.

To qualify, an employee will need to satisfy the following criteria as at 1 July 2020:

1. They were employed as either:
   1. Non-casual employee (full-time, part-time or fixed term).
   2. Long-term casual employee (employed on a regular and systematic bases for the 12 months preceding 1 July 2020) and not permanently employed else ware.
2. They were 18 years or older (employees aged 16 or 17 can also qualify if they were independent or not studying full-time).
3. They are an Australian resident under the Social Securities Act 1991.

What do I need to do?

Employers already participating in the JobKeeper scheme must review their staff for any employees that may now be eligible to participate in the JobKeeper scheme under the 1 July employment test criteria outlined above. Such employees may include:

• Non-casual employees hired between 2^nd March and 1 July 2020.
• Casual employees who were not considered long-term as at 1 March but did become long-term by 1 July 2020.
• Employees who did not meet the age requirements as at 1 March but did by 1 July 2020.
• Employees who did not meet the residency (Visa) requirement as at 1 March but did by 1 July 2020.

Employees that do now qualify must be provided with a nomination notice by 21 August 2020. There are calls for an extension to this date however nothing has been announced at this time.

Anything else I should know?

• These new measures do not impact those employees and Eligible Business Participants already enrolled in the JobKeeper scheme. These recipients will continue to remain eligible having satisfied the original 1 March 2020 employment test.
• There are no changes to other aspects of the scheme e.g. the wage condition must still be met (that is, that wages have already been paid before receipt of the JobKeeper payment).
• The JobKeeper scheme cessation date remains 27 September 2020. At which point the JobKeeper 2.0 extension will come into effect however the full details of which, have not yet been released.

If you require assistance assessing the eligibility of your employees in light of the 1 July employment test criteria, please contact our office.

– Jason Bamford

Posted 19.08.2020

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.