JobKeeper Amendment (No.7) 2020

JobKeeper Amendment (No.7) 2020

The JobKeeper Amendment (No.7) 2020 has seen a legislative instrument registered on 14 August 2020 amending the JobKeeper rules to allow businesses to claim the subsidy in respect of new employees. The changes apply to JobKeeper fortnights beginning on or after 3 August 2020.

Under the changes, the reference date for assessing which employees are eligible for the JobKeeper payment is now 1 July 2020.

For JobKeeper fortnights beginning on or after 3 August 2020, there is the ability for an employee to re-nominate with a new employer (which was previously not allowed). Broadly, if an individual was a 1 March 2020 employee of another entity but is not employed by that entity at any time from the start of 1 July 2020, then the individual is now permitted to give a nomination notice to a new employer. The same applies for eligible business participants, as applicable

For any employees that become eligible employees from 1 July 2020, an employer on the JobKeeper scheme must provide notification of the new eligible employees to the Commissioner within 7 days of commencement of the Legislative Instrument (commenced 15 August 2020). 

The ATO has also confirmed that for fortnights commencing on 3 August and 17 August 2020, employers will have until 31 August 2020 to meet the wage condition for all new eligible employees who are now included in the JobKeeper scheme under the 1 July 2020 eligibility test.

For further details relating to this Amendment please see the Amendment Rules (No.7) 2020 here

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Article referenced from: 2020 Chartered Accountants Australia and New Zealand (CA)