• Last of the expected major changes implemented for JobKeeper eligibility

On 1 May 2020, the Federal Treasurer amended the JobKeeper rules to give effect to the changes announced last Friday, 24 April 2020 and additional measures.

Treasury is adamant there will be no further major changes to the JobKeeper payment eligibility, providing some certainty to employers looking to access the scheme.

These most recent measures:

  1. Provide a modified decline in turnover test for Income Tax consolidated or consolidatable groups, or GST groups, in respect of an employer entity whose principal activity is the provision of employee labour services
  2. Adjust the way in which Commonwealth payments are treated when calculating a university’s turnover
  3. Extend the JobKeeper scheme to certain charities that undertake overseas aid and disaster relief
  4. Adjust the way in which payments made by the Government and the United Nations are treated when calculating a charity’s turnover
  5. Include a notification requirement to confirm that all employees of a participating entity must be given the opportunity to agree to be nominated (the one in, all in rule).  For employers seeking JobKeeper payments for the transitional fortnights to 26 April 2020, this notice must be given by 8 May 2020 (ie no later than 7 days after the commencement of the amendment)
  6. Impose additional requirements that must be met for children who are 16 or 17 years old on 1 March 2020 to be eligible nominees. The ATO has clarified that businesses that have already paid the $1,500 a fortnight to 16 and 17 year olds that are now deemed ineligible will be reimbursed for that fortnight.
  7. Extend the JobKeeper scheme to include religious practitioners that are not employees
  8. Make a technical amendment to deny JobKeeper eligibility for Australian companies and trusts which are wholly owned by foreign country sovereign entities
  9. Make a technical amendment to clarify that a business seeking JobKeeper payments for one business participant must demonstrate a substantial decline in turnover

Payments are expected to start flowing from next week. Employers have until 31 May 2020 to enroll to claim for the fortnights in April and May.

What you need to do

These amended rules provide employers with a lot to do, even if the JobKeeper enrolment has already been submitted, including:

  1. Ensuring that all evidence is held to confirm compliance with the “one in all in” test by next Friday 8 May 2020.
  2. Urgently determining whether each 16 or 17 year old employee qualifies for the scheme at all and, if not, to cancel further top-up payments for them. Under these new requirements, 16 and 17 year olds will only qualify if they are independent under the Social Security Act 1991 or are not studying full-time.
  3. Determining whether any of the other changes affect whether JobKeeper is available and whether further employees and business participants may now qualify.

When applying the modified decline in turnover test, employers should note:

  1. It is a further test, so employers already qualifying under the basic test or the existing alternative tests will not be affected if the modified decline test doesn’t suit them.
  2. It only benefits employers that are members of income tax consolidated or consolidatable groups or GST groups. As such, many employers will not benefit from the modified decline test, including many privately-owned groups.
  3. Whether or not those with a qualifying ownership structure will benefit from the modified test will depend on the activities of the employer entity and whether they are principally providing labour services within the group.
  4. The Commissioner of Taxation will retain discretion to determine that the modified test does not apply which creates a risk of self-assessing that the modified decline in turnover test applies – further administrative guidelines are expected on this.


Keep up to date about JobKeeper on our JobKeeper hub.

JobKeeper hub