JobKeeper Changes – Employment Start Date and Amendment to Turnover Test


On 7 August, the government announced two further changes to the JobKeeper program. Firstly, employees hired as at 1 July 2020 may also be eligible to receive JobKeeper. Secondly, employer turnover eligibility for the revised JobKeeper scheme to commence on 28 September 2020 will be based on a single quarter tax period (rather than multiple quarters as previously announced). 

  1. Employee Change 

Before this change, an eligible employee had to, among other things, be employed as at 1 March 2020 to qualify for JobKeeper. Additionally, where they were a casual at that date, they had to have been employed on a regular and systematic basis for longer than 12 months as at 1 March 2020. 

The 7 August 2020 announcement changes that reference point to 1 July 2020, with effect to all JobKeeper fortnights commencing on or after 3 August 2020 – which means it impacts the last four fortnights of the original JobKeeper scheme. 

Noting that the “one-in, all-in” principle still applies to the 1 July changes, employers should consider which employees are now eligible to bring into the JobKeeper scheme, including: 

  • full-time or part-time employees employed after 1 March 2020 but on or before 1 July 2020; 
  • employees who may have joined the business after 1 March 2020 but are currently stood down 
  • casual employees employed at 1 July 2020 who commenced their casual employment before 1 July 2019. 
  • employees who may not have met the age condition as at 1 March 2020, but do as at 1 July 2020 
  • employees who may not have met the residency condition as at 1 March 2020, but do as at 1 July 2020 
  1. Employer Turnover Change 

From 28 September 2020, businesses and not-for-profits seeking to claim JobKeeper will be required to re-assess their eligibility for the JobKeeper extension with reference to their actual turnover in the September quarter 2020 (rather than the June and September quarters). Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in this quarter to be eligible for JobKeeper from 28 September 2020 to 3 January 2021. 

Businesses and not-for-profits will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in the December quarter 2020 (rather than each of the June, September and December quarters) to remain eligible for the period to 28 March 2021 (the March quarter). 

Further Consequent Change 

This amendment, announced on Friday 14 August, accommodates the employee eligibility change on 7 August (above). 

With the key date for assessing which employees are eligible for JobKeeper now 1 July 2020, rather than 1 March 2020, the ATO states that employers should start paying new eligible employees a minimum of $1,500 per fortnight from  JobKeeper fortnight 10, which commenced on 3 August. To accommodate what may be a cashflow issue brought about by this change, for the fortnights commencing on 3 August 2020 and 17 August 2020, the ATO is allowing employers until 31 August 2020 to meet this wage condition for all new eligible employees included in the JobKeeper scheme under the new 1 July eligibility test.