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Job Keeper - Change of Ownership

Newbie

Views 2538

Replies 6

Hi,

 

We have a few casuals who have worked for our business for over a year. However, the business underwent a change of ownership 6 months ago. Will these casuals still be eligible for the Job Keeper payment? 

 

Thanks

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Former Community Support

Replies 5

Hi @VR2020 

 

Thank you for your question. Assuming the business and employees meet the eligibility criteria, the casual employees can recieve the JobKeeper paymets even if the entity operating the business has changed recently.

 

We are currently working through the legislation and should have more information available soon. Keep checking our 

knowledge base articles and website for updates.

 

I hope this helps.

EmilyH

6 REPLIES 6

Most helpful response

ATO Certified Response

Former Community Support

Replies 5

Hi @VR2020 

 

Thank you for your question. Assuming the business and employees meet the eligibility criteria, the casual employees can recieve the JobKeeper paymets even if the entity operating the business has changed recently.

 

We are currently working through the legislation and should have more information available soon. Keep checking our 

knowledge base articles and website for updates.

 

I hope this helps.

EmilyH

I'm new

Replies 0

Hi @EmilyH 

 

Can we also apply the abovementioned answer to casual, part-timers and full time staff who meet the eligibility criteria if the business will undergo a change in ownership in May 2020? (assuming the business also satisfies the eligibility criteria and fall in turnover % from previous year)

 

Will the new entity be able to apply for the JobKeeper payments on behalf of the employees that have been transferred over?

 

Thank you

Newbie

Replies 3

Good afternoon,

 

Just wondering if there has been any update on this or indication when there will be a resolution (I've checked website).

 

Thanks,

Community Moderator

Replies 2

Hi @ctwh11 and @Cindy

 

Thanks for your posts and for your patience.

 

The information on our website regarding a change of ownership is specifically in relation to when a business changes hands during the 12 months prior to 1 March 2020 and how it affects long-term casuals. It doesn't apply to other scenarios.

 

Based on our current information, if a business changes hands after 1 March the new business owner wouldn't be able to claim the JobKeeper Payment because they wouldn't satisfy all the eligible employer requirements as outlined on our website. If there are any changes to this, we will update our website accordingly.

 

Good luck with it all.

 

Thanks, ChrisR

Newbie

Replies 1

Hi @ChrisATO,

 

Thanks for the response. So to clarify, if a business changed ownership after 1 March 2019 will their long-term casuals be eligible for the JobKeeper payment? 

 

Cheers

Former Community Support

Replies 0

 Hi @VR2020

 

Thanks for contacting ATO Community. Sorry for the delayed response, I hope the situation has been sorted, if not I hope this information helps you.

 

It’s not compulsory for employers to participate however if they decided to enrol, they needed to nominate all eligible employees, and could not pick and choose.

 

Both an employer and an employee have to meet all the eligibility requirements to be eligible for JobKeeper payment.

 

Our JobKeeper guides provide step-by-step information on how to enrol for the JobKeeper payment, how to identify and maintain your employees and how to make a business declaration each month.

 

You can satisfy the fall in turnover test in two ways:

  • The basic test based on GST turnover
  • The alternative test where there isn’t an appropriate relevant comparison period in 2019. For example where businesses didn’t exist in the comparison period or where businesses were affected by a natural disaster in the comparison period.

You only need to work this out once – you don't need to re-test turnover each month.

 

If you are eligible and your long term casuals meet all the employee requirements, then they'll be eligible for the Job Keeper payments.

 

You can find out more on who is considered a long-term casual employee on our website.

 

I hope this information helps you and you remain well during this time.

MariR