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CORONAVIRUS UPDATE (COVID-19)
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JOBKEEPER PAYMENT UPDATE
To ensure the integrity and the efficient operation of the JobKeeper Payment, the Federal Government yesterday clarified the operation of the rules.
This includes (in part):
- Full time Students (aged 16 and 17 years old): As noted in the explanatory statement to the existing rules, the benefit of the JobKeeper Payment to Workers over the age of 16 is justified for those who are financially independent and who require the security provided by participation in the JobKeeper Scheme and the maintenance of the working relationship that it affords. The rules will provide that Full Time students who are 17 years old and younger, and who are not financially independent, are not eligible for the JobKeeper Payment. This clarification will apply prospectively, which would mean an eligible Employer that has already met the Wage Condition of paying such an Employee $1,500 for a fortnight could be entitled to a JobKeeper Payment in arrears for that fortnight.
There were concerns within businesses about the flat $1,500 Wage Subsidy applying to young people earning a small amount of money. They would be paid the $1,500 fortnight under the Government’s original design, even if they were receiving less than $100. That has now been changed.
- ‘One In, All In’ Principle: Once an Employer decides to participate in the JobKeeper Scheme, and their eligible Employees have agreed to be nominated by the Employer, the Employer must ensure that all of these eligible Employees are covered by their participation in the Scheme. This includes all eligible Employees who are undertaking work for the Employer or have been Stood Down. The Employer cannot select which eligible Employees will participate in the scheme. As noted in the Explanatory Statement to the existing Rules, this ‘One In, All In’ Principle is already a key feature of the Scheme and will be made clearer in the Rules.
Eligible Employees (sourced from ATO website)
Your Employee is eligible under the JobKeeper Payment scheme if they:
- are employed by you (including those stood down or re-hired)
- were either a;
- Permanent Full-Time or Part-Time Employee at 1 March 2020
- Long-Term Casual Employee (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020 and not a Permanent Employee of any other Employer
- were at least 16 years of age on 1 March 2020
- were an Australian Resident as at 1 March 2020, within the meaning of theSocial Security Act 1991, which requires that they reside in Australia, and are one of an Australian citizen, the holder of a permanent visa, or a Protected Special Category Visa Holder. More information about these requirements can be found from the Services Australia website Your Employee can also be an Australian tax resident who is a Special Category (Subclass 444) Visa Holder. Employees who are not permanent residents of Australia must notify you of their visa status to allow you to determine if they are eligible.
- were not in receipt of any of these Payments during the JobKeeper fortnight;
- government Parental Leave or Dad and Partner Pay
- a payment in accordance with Australian Worker Compensation Law for an individual’s total incapacity for work
- agree to be nominated by you.
Link to Hon Josh Frydenberg JobKeeper Update 24/4/20 – https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/jobkeeper-update
We wish you & your family all the very best through this unprecedented time.
BE IN TUNE
– Ensure your Business is Compliant with current Australian Employment Law. Has your Business had a yearly Compliance Check? Ensure your internal operations are efficient, effective and compliant. A solid Employment Framework should protect your Business in the event of a claim.
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