JobKeeper Changes

New Announcements for JobKeeper Payments for NFP and Charities

On the 24 April 2020 the Australian Government made changes to the JobKeeper payment scheme.

Federal Treasurer Josh Frydenberg said charities now have the option to use either their total turnover, or their turnover excluding government revenue to access the payment.

The move helps to ensure that the eligibility of charities is not adversely affected where they are delivering significant services that are funded by government.

Not-for-profit entities (including charities) that meet the turnover tests are eligible to enrol for the JobKeeper payment. An ACNC-registered charity, other than a university and school, only needs to show a decline in turnover of 15% or more. Those who are not registered charities will need to show a decline of 30% or more.

Extension of time

The Australian Taxation Office Commissioner has also extended the time to enrol for the initial JobKeeper periods. The move allows more time for organisations to prepare under the new rules and to determine if they are eligible.

The Commissioner has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.

If you enrol by 31 May you will still be able to claim for the fortnights in April and May, provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.

For the first two fortnights (30 March – 12 April, 13 April – 26 April), the government will accept the minimum $1,500 payment for each fortnight that has been paid by you even if it has been paid late, provided it is paid by 8 May 2020. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

You can enrol and claim for JobKeeper earlier if you choose. For example, you can enrol by the end of April to claim JobKeeper payments for the two fortnights in April.

Eligible employees

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 the Social 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 under residence descriptions. 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 (see Nominating employees).

You cannot claim for any employees

Who either:

  • Were first employed by you after 1 March 2020,
  • Left your employment before 1 March 2020,
  • Have been, or have agreed to be, nominated by another employer.

To check eligibility for JobKeeper, please speak with your accountant or financial adviser.