As you would be aware, an important feature of the JobKeeper scheme is the “one in, all in” rule. This rule requires employers to nominate all its employees eligible to participate in the scheme. That is, an “employee nomination notice” must be provided to all eligible employees.
One of the critical changes to the scheme is the change to the eligible employee test date from 1 March 2020 to 1 July 2020. This change is effective 3 August 2020 and accordingly, affects the last four fortnights of the existing scheme. There are a number of scenarios in which employees could have become eligible employees during the period 2 March 2020 – 1 July 2020, including employees who:
- were hired on a full-time or part-time basis;
- became long-term casual employees (were employed for 12 months);
- became Australian citizens, permanent residents or holders of a Special Category Visa;
- turned 18 during the period; or
- were 16 or 17 and became either financially independent or ceased to be full-time students.
If this is applicable to any employers who currently participate in the scheme, they must provide an “employee nomination notice” to these employees by 22 August 2020. Failure to do so will be a breach of the “one in, all in” rule.
Further, in some circumstances, it will be necessary to make “top-up” payments to these employees to ensure that they are paid at least $1,500 per fortnight. The ATO has allowed employers until 31 August 2020 to make such “top-up” payments for JobKeeper fortnights 10 and 11.
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