Coronavirus Economic Response Package (Payments and Benefits) Rules 2020

PART 3 - JOBMAKER HIRING CREDIT PAYMENT  

Division 2 - Entitlement  

SECTION 30   MEANING OF ELIGIBLE ADDITIONAL EMPLOYEE  

30(1)    
An individual is an eligible additional employee of an entity for a period if:

(a)    the individual is employed by the entity at any time in the period; and

(b)    the individual commenced the employment with the entity referred to in paragraph (a) on or after 7 October 2020 but no later than 6 October 2021; and

(c)    at the time the individual commenced that employment with the entity, the individual was either:

(i) aged 16 years or over but less than 30 years; or

(ii) aged 30 years or over but less than 36 years; and

(d)    the individual satisfies the requirement in subsection (2) for the period; and

(e)    the individual satisfies the requirements in subsections (4) and (5); and

(f)    the individual is not excluded from being an eligible additional employee of the entity for the period under subsection (7).

Average hours of work requirement

30(2)    
The requirement is that the total number of hours the individual works, or for which the individual is paid for work done, as an employee of the entity during the period is greater than or equal to the amount worked out by:

(a)    dividing the total number of days that the individual is employed by the entity during the period by 7; and

(b)    multiplying the result (rounded down to the nearest whole number) by 20.

30(3)    
For the purposes of subsection (2), the hours an individual works, or for which an individual is paid for work done, during a period are taken to include any hours of paid leave, or paid absence on public holidays, that the individual takes during the period.

Pre-employment requirement

30(4)    
The requirement is that, on each day of a period that consists of 28 consecutive days and falls wholly within the 84 days ending on the day before the individual commenced the employment with the entity referred to in paragraph (1)(a), either:

(a)    the individual was receiving one of the following under the Social Security Act 1991 :

(i) parenting payment;

(ii) youth allowance (other than on the basis that the individual was undertaking full-time study or was a new apprentice);

(iii) jobseeker payment; or

(b)    the individual was qualified under the Social Security Act 1991 for a payment or allowance mentioned in paragraph (a), but the payment or allowance was not payable to the individual.

Notice requirements

30(5)    
The requirements are that:

(a)    the individual has given to the entity a notice in the approved form stating that the individual satisfies the requirements in paragraph (1)(c), subsection (4) and paragraph (b) of this subsection; and

(b)    at the time the individual gives the entity the notice, the individual has not given any other entity a notice under this subsection (unless the notice given to the other entity has ceased to have effect under subsection (6)); and

(c)    the notice has not ceased to have effect under subsection (6).

Note:

If an overpayment results from an individual giving a notice to more than one entity, the individual may be jointly and severally liable to pay the overpayment and any general interest charge on the overpayment: see section 11 of the Act.

30(6)    
If an individual gives a notice to an entity under subsection (5), the notice ceases to have effect if the individual ceases to be employed by the entity.

Note:

This subsection means that, if the individual recommences employment with the entity, the individual will need to give the entity another notice under subsection (5).

Exclusions

30(7)    
An individual is excluded from being an eligible additional employee of an entity for a period if:

(a)    the individual is:

(i) in the case of an entity that is a sole trader - a relative of the sole trader; or

(ii) in the case of an entity that is a partnership - a partner in the partnership or a close associate of a partner in the partnership; or

(iii) in the case of an entity that is a trust (other than a widely held unit trust) - a trustee or a beneficiary of the trust, or a close associate of a trustee or a beneficiary of the trust; or

(iv) in the case of an entity that is a company (other than a widely-held company) - a shareholder in or a director of the company, or a close associate of a shareholder in or a director of the company; or

(b)    the individual was, at any time in the period of 6 months ending on 6 October 2020, engaged other than as an employee to exercise powers, or to perform functions or duties, for the entity that are substantially similar to the powers exercised, or the functions or duties performed, by the individual as an employee of the entity; or

(c)    the individual commenced the employment with the entity referred to in paragraph (1)(a) 12 months or more before the first day of the period.

Note:

See section 4AA for the meaning of close associate .