The Commissioner has granted an extension of time for eligible businesses to enrol for the initial JobKeeper Wage Subsidy Scheme payments from 30 April 2020 until 31 May 2020.

Businesses will still need to ensure that they meet all eligibility criteria in order to claim for the JobKeeper Wages Subsidy Payments from the fortnight commencing 30 March 2020, including the following:

  • Meet the decline in turnover test.
  • Obtain completed JobKeeper Employee Nomination Notices from all eligible employees.  Please note that it is a “One-in, all-in” system – employers cannot pick and choose who is nominated for the scheme.
  • Ensure all eligible employees have been paid at least $1,500 before tax for each relevant fortnight (N.B. for the first two fortnights in April 2020, catch up payments are acceptable as long as they are paid by 30 April 2020).
  • Ensure that you have actioned the relevant payroll system updates required to correctly record the JobKeeper start date for all eligible employees and any JobKeeper top-up payments made by the correct date – i.e. by 30 April 2020.  (PLEASE NOTE – each payroll software provider requirements are different).

Further Clarity on Eligible Employees for JobKeeper Payments

The criteria to be eligible has now been updated by Treasury – please see highlights below…

To be eligible, employees must meet the following criteria:

  • Employees must have been on the employer’s payroll as at 1 March 2020 and continue to be engaged by that employer. (This includes any staff that were stood down and then re-hired, and any staff that were on leave as at 1 March 2020 e.g. annual leave, long service leave, unpaid leave, maternity leave, etc).
  • Employees must be either working full-time or part-time, or if a casual worker must have been employed with the employer for at lest 12 months as at 31 March 2020. (Please note that if they are a casual employee, they must not be a permanent employee of any other employer).
  • Employees must be an Australian Citizen, or hold a permanent visa or hold a Special Category (Subclass 444) as at 1 March 2020.
  • Employees must be at least 16 years of age.

Employees will not be eligible if:

  • They are a full-time student aged 17 years or under, and they are not financially independent.
  • They are receiving  Paid Parental Leave Pay from Services Australia (including any Dad or Partner pay).
  • They are currently totally incapacitated and receiving Australian Worker’s Compensation payment in respect of total incapacity to work.

Where employees were stood down and accessed JobSeeker or other government support through Centrelink, they will need to notify Services Australia ASAP of their change in circumstances if they now intend to claim the JobKeeper payment via their employer.

Payroll Systems & JobKeeper

Please note that this is a constantly changing space at the moment!  We recommend that you keep checking your relevant software support regularly for any new updates on the reporting requirements.

We note that MYOB has updated its JobKeeper payroll instructions significantly.  Please refer to the link below or contact your Cooper Reeves Adviser.

You will also need to access the “Payroll Support during COVID-19” section of Xero by going to Payroll, selecting Overview and clicking the link