RSM Australia

Changes to JobKeeper – what do employers need to do now?

Tax Insights

With all the changes the Australian government announced around the JobKeeper extension (JobKeeper 2.0 and 2.1), there has been some confusion around the Government changing the employee eligibility date from 1 March 2020 to 1 July 2020. 

While this change has yet to be legislated, the Government has flagged that this change (once legislated) will have retrospective effect, from 3 August 2020 (ie the start of JobKeeper fortnight 10). 

Immediate actions required from employers

 In practical terms, what this change means is that all existing JobKeeper employers should be taking immediate action, as follows:Jobkeeper changes

  • Employers must review all new hires made between 1 March 2020 and 30 June 2020 inclusive and send nomination forms to these employees. In addition, employers will need to make any necessary top-up payments. Technically, the nomination forms and top-up payments need to be undertaken by the end of JobKeeper fortnight 10, being 16 August 2020. While it’s possible the ATO may allow some leniency with these dates, we are yet to see any guidance so it’s important for employers to not assume that there will be any extensions.
  • Similarly, for any long-term casual employees that were hired between 1 March 2019 and 30 June 2019, they will need to be sent nomination forms and top-up payments made, unless the employee has already nominated for JobKeeper with another employer.

It is important for employers to be aware that doing nothing is not an option because the “one in, all in” principle requires an employer currently enrolled for JobKeeper to nominate all eligible employees. A failure to meet the one in, all in principle can expose an employer to significant penalties under the Fair Work Act.   

Click here to read our recent JobKeeper article for further information.

How can RSM help?

If you require advice on JobKeeper eligibility for your business and how the proposed changes may impact your employees or your business, please reach out to your local RSM office.

RSM in Sydney - providing accountanting, auditors and consultants for sydney Businesses