Be a World Saver!
The next fortnight ends this Sunday September 13 so you have an opportunity to topup eligible employees who have not been paid $1500 for this fortnight.
There are now new rules that have been made law regarding previously non eligible employees as at August 3 who were employed as at 1 July 2020.
Long Term Casuals – ATO Rules
If a casual employee was not an eligible employee prior to 3 August 2020, you can use the 1 July 2020 test to reassess that employee’s eligibility. The test requires that the employee be employed on a regular and systematic basis for the period 2 July 2019 to 1 July 2020.
New permanent Employees as at 1 July 2020 who were not previously eligible
From 3 August 2020, you may be able to nominate new employees as eligible employees for the JobKeeper scheme. These new employees must have been employed by you on 1 July 2020 and meet the other eligibility criteria. This can include employees that:
- you employed after 1 March 2020
- were employed by you on 1 March 2020 but were not eligible employees for fortnights ending on or before 2 August 2020, for example, because they only turned 18 after 1 March 2020.
The minimum payment of $1500 per fortnight must be made to claim for the new employees.
5 examples from the ATO for long term casuals and regular and systematic basis
Examples
Example 1 – recurring work schedule
On 1 June 2019, Kym began working as a casual barista at Top Cafe. During the period of 12 months that ended on 1 July 2020, she regularly worked shifts on Friday and Saturday mornings and occasionally worked shifts on other days. Although Kym may have worked different numbers of hours each week, Kym can be considered to be a long-term casual employee of Top Cafe because, on 1 July 2020, she was employed on a regular and systematic basis for a period of 12 months.
End of example
Example 2 – varying work schedule
On 1 July 2020, Irfan was a university student working as a casual employee in the meat processing industry. Since July 2019, his employer generally rostered Irfan for shifts on three to four days a week on differing days. Irfan was required to indicate his availability in advance and worked in accordance with a published roster. However, Irfan was not asked to work on days when there was not enough production demand and also did not work for several weeks in the year due to his exam schedule.
Irfan is considered to be a long-term casual employee because, on 1 July 2020, he was employed on a regular and systematic basis for a period of 12 months.
End of example
Example 3 – seasonal work
Alice works every year for around 3-4 months during her employer’s busy season. Because she was only employed for 3-4 consecutive months out of the 12 month period that ended on 1 July 2020, Alice was not employed on a regular and systematic basis throughout this 12 month period so is not considered a long-term casual employee.
End of example
Example 4 – period of absence
Sam had a recurring work schedule throughout the first 2 months of the 12 month period that ended on 1 July 2020. However, after those 2 months, he did not work for a period of 2 weeks, after which he returned to his recurring work schedule. His employer became unable to offer shifts to Sam for around 3 months from March 2020. However, Sam returned to work with shifts in June 2020. The combined absences of around 3-4 months may affect whether he was employed on a regular and systematic basis during the 12 month period.
Although Sam did not work for a period of around 3-4 months in the 12 month period that ended on 1 July 2020, both before and after his periods of absence he had recurring work. As Sam had recurring work for about 8-9 months out of the 12 month period that ended on 1 July 2020, it is likely that he will have been employed on a regular and systematic basis throughout the 12 month period.
Even if Sam’s absence overlaps 1 July 2020, provided his combined periods of absence were around 3-4 months, he may still have been employed on a regular and systematic basis. It would, however, be important to consider whether there was a mutual expectation up until 1 July that Sam would return to regular shifts.
End of example
Example 5 – occasional shifts
Tori has worked for the same employer on a casual basis since 2017. She used to work two or three shifts each week. However, since July 2019, she has only worked irregularly on ten occasions.
Tori would not be considered a long-term casual employee because her employment is not considered to be regular and systematic.
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