Businesses now able to claim JobKeeper for new employees

A legislative instrument was 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.

Another very positive change relates to 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.

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 information, please refer to:
Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 7) 2020
https://www.legislation.gov.au/Details/F2020L01021
ATO – JobKeeper key dates
https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-key-dates/

This unformation was released on 17 August 2020 by NTAA and was current as at that date. It does not take into account any subsequent changes.

Source: National Tax & Accountants’ Association Ltd: August 2020