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Re: JobKeeper - Dependent Student

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It's been recently brought to my attention that there are fulltime high school students claiming JobSeeker payments resulting in a payment amount greater than that which they were earning when they were working part-time or casually prior to COVID-19.  Not only this but they're dependants that don't pay rent or food and the like and this doesn't appear to be means tested?

 

This appears to be quite blatant abuse of the public purse when it is being stretched to the max helping those that truly need help.

 

Can someone confirm this is 'not' the case?

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Hi @TU

 

We have updated the criteria for an eligible employee

 

on 1 March 2020 were 18 years of age or older (if they were 16 or 17 they can also qualify for fortnights before 11 May 2020, and continue to qualify after that if they are independent or not undertaking full time study)

 

So dependent students who were 16 or 17 who were eligible employees, they will remain eligible for the first three JobKeeper fortnights.

 

Hope this helps.

 

Thanks, Ari.

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Hi @ConcernedTaxPay,

 

As it currently stands, that is right - the legislation passed down from Parliament ensures that if you are 16 years and above and meet the other requirements, you are eligible for the full JobKeeper payment - even if you are still at school and dependent. 

 

This is, however, being looked into as a high priority and our information guides and fact-sheets will be updated as soon as any changes are confirmed.

 

More info can be found here:

 

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/jobkeeper-update

 

"Full time students aged 16 and 17 years old:  As noted in the explanatory statement to the existing rules, the benefit of the JobKeeper payment to workers over the age of 16 is justified for those who are financially independent and who require the security provided by participation in the JobKeeper scheme and the maintenance of the working relationship that it affords.  The rules will provide that full time students who are 17 years old and younger, and who are not financially independent, are not eligible for the JobKeeper Payment.  This clarification will apply prospectively, which would mean an eligible employer that has already met the wage condition of paying such an employee $1,500 for a fortnight could be entitled to a JobKeeper Payment in arrears for that fortnight."

 

As the ATO simply administers the legislation, I can't offer any perpective on the reasoning behind the original decision, but know that your concerns, and those of others, have been heard loud and clear and are being addressed.

 

Hope this helps!

 

Josh

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Thanks for the reply Josh.

Whilst these children don't understand they're profiteering from a global pandemic it should be brought to their attention as soon as possible.

No individual should profit from this, we all need to look after each other and my taxes should be going where they're most needed. If I or anyone else was to find themselves in hospital I would hope the medical staff are appropriately equipped to do their jobs and make it home at the end of the day to their families. If the money is squandered and runs dry, well where will we all be.

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Hi All

 

In my opinion there is conficting information on how many fortnights of JobKeeper employers have to pay these dependent students.

 

Can I please have some clarification.

 

Reading the Treasurer's Media Release update 24/4/20  " This clarification will apply prospectively, which would mean an eligible employer that has already met the wage condition of paying such an employee $1,500 for a fortnight could be entitled to a JobKeeper Payment in arrears for that fortnight". This suggests that only two fortnightly payments will be reimbursed by the government.

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/jobkeeper-update

 

Yet I am reading this link that they can qualify for fortnights before 11 May 2020, which includes the third fortnight.  https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/

 

As I don't wish to fall foul of FairWork I would like to know the correct answer, as I also don't want to fork out $4500 that I won't get subsidised for.

 

Regards

 

 

 

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Hi @TU

 

We have updated the criteria for an eligible employee

 

on 1 March 2020 were 18 years of age or older (if they were 16 or 17 they can also qualify for fortnights before 11 May 2020, and continue to qualify after that if they are independent or not undertaking full time study)

 

So dependent students who were 16 or 17 who were eligible employees, they will remain eligible for the first three JobKeeper fortnights.

 

Hope this helps.

 

Thanks, Ari.