The Treasurer released a JobKeeper Update on Friday afternoon, 24 April 2020. Key clarification includes:

  • Re-emphasised the 'one-in, all-in' principle. This means that once an Employer decides to participate in the scheme, and their eligible employees have agreed to be nominated by the Employer, the Employer must ensure that all of those eligible employees are included. This will include employees that have been stood down and of course those still working. Employers cannot select which eligible employees will participate in the scheme.

  • Employers that use service companies as a vehicle to engage employees rather than the operating entity will also be included, with an alternate decline in turnover test for eligible special purpose service entities that provide employee labour to group members and that have not met the basic test for decline in turnover.

  • Full-time students aged 16 and 17 years old, who are not financially independent will now not be entitled to JobKeeper. This will be applied prospectively though, so any Employer that is eligible for the scheme and has already met the Wages Condition of paying such an employee $1,500 per fortnight (before tax) could be entitled to a JobKeeper Payment in arrears for that fortnight.

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This content is not a substitute for legal advice and is for information only. Employers should obtain advice that is specific to their circumstances and business operations, and not rely on this publication as legal advice.