JobKeeper Update 27/07/2020

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JobKeeper Update 27/07/2020

Carmen Lawson • April 26, 2020

Details on Treasury update to the JobKeeper Payment

Hi All,

The JobKeeper payment is the largest Government subsidy payment in the history of Australia.

Keeping that in mind, it has been one of the quickest legislation to be passed through parliament. Because of this the Government has had to update the legislation as issues come to hand. This has proven to be difficult for us as we are limited to what the current legislation is at the time of giving advice. So we ask that you please keep this in mind.

Over the weekend, the important pieces of the latest update is as follows:

16 & 17 YEAR OLD EMPLOYEES

• These employees are not eligible for the JobKeeper payment if they are not classified as financially independent.

• Therefore full-time students will not be eligible for the JobKeeper payment.

• Because this adjustment to the legislation has come in late, it is implied that the Government will honor payments made in April only (to bring their pay up to $750/wk)

• So please be careful with these employees moving forward.

EMPLOYEES EMPLOYED THROUGH A SPECIAL PURPOSE ENTITY, RATHER THAN AN OPERATING ENTITY

• The Government has also addressed this circumstance and suggested that the turnover for the operating entities be considered as an alternate test for turnover rather than the payroll entity.

• This one still raises some questions, so if you are in this category please contact our office for further clarification.

REGISTRATION DATE EXTENDED UNTIL 31st MAY 2020

• The Government has also extended the registration period for payments starting from the 30th March until the 31st May (previously was the 30th April).

• However please keep in mind, in order to receive payments for wages paid in the month of April, you will still need to show $ 1,500 minimum fortnightly payments have been made through both months.

• April is the only month that you can pay ‘catch up’ payments to prove the $ 1,500/fortnight payments.

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