Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 2) 2020 (F2020L00546)

Schedule 1   Amendments

Part 1   Main amendments

Coronavirus Economic Response Package (Payments and Benefits) Rules 2020

16   After Division 3 of Part 2

Insert:

Division 3A - Entitlement based on paid religious practitioners

12A Entity's entitlement to jobkeeper payment for a religious practitioner

(1) An entity is entitled to a jobkeeper payment for an individual for a fortnight if:

(a) the fortnight is a jobkeeper fortnight (see subsection 6(5)); and

(b) the entity is a registered religious institution; and

(c) the entity qualifies for the jobkeeper scheme at or before the end of the fortnight (see section 7); and

(d) the individual is an eligible religious practitioner for the entity for the fortnight (see section 12B); and

(e) the entity has satisfied the payment condition in section 12C in respect of the individual for the fortnight; and

(f) the entity has notified the Commissioner in the approved form at or before the time referred to in subsection (2) that the entity elects to participate in the jobkeeper scheme; and

(g) the entity has given information about the entitlement for the fortnight, including details of the individual, to the Commissioner in the approved form; and

(h) the entity has not notified the Commissioner in the approved form that the entity no longer wishes to participate in the jobkeeper scheme.

Note 1: Some provisions of the Act also affect whether an entity is entitled to a jobkeeper payment: see section 14 of the Act (about record keeping) and section 19 of the Act (about contrived schemes).

Note 2: The approved form may require further information: see paragraph 388-50(1)(c) in Schedule 1 to the Taxation Administration Act 1953.

(2) For the purposes of paragraph (1)(f), the time at or before which the entity must notify the Commissioner that the entity elects to participate in the jobkeeper scheme is:

(a) for an entitlement arising in the first, second or third jobkeeper fortnight - the end of the third jobkeeper fortnight; or

(b) for an entitlement arising in another fortnight - the end of the fortnight.

Note: The Commissioner may defer the time for giving an approved form: see section 388-55 in Schedule 1 to the Taxation Administration Act 1953.

No other entity to be entitled for the same individual

(3) An entity cannot be entitled under this section to a jobkeeper payment for an individual if another entity is entitled under this section or section 6 or 11 to a jobkeeper payment for the individual.

Entity must notify individual

(4) The entity must notify an individual in writing within 7 days of giving the Commissioner details of the individual under paragraph (1)(g).

Integrity rule

(5) An entity is not entitled to a jobkeeper payment under this section unless the entity was a registered religious institution on 12 March 2020.

12B Meaning of eligible religious practitioner

(1) An individual is an eligible religious practitioner for an entity that is a registered religious institution for a fortnight if:

(a) the individual is not employed by the institution at any time in the fortnight; and

(b) the individual satisfies the requirements in subsection (2) at a time in the fortnight; and

(c) the individual satisfies the requirements in subsections (3) and (4); and

(d) the individual is not excluded from being an eligible religious practitioner for the institution for the fortnight under subsection (5).

Fortnightly requirements

(2) The requirements are satisfied at a time if, at that time:

(a) the individual is a religious practitioner; and

(b) the individual is doing an activity, or a series of activities:

(i) in pursuit of the individual's vocation as a religious practitioner; and

(ii) as a member of the registered religious institution.

1 March 2020 requirements

(3) The requirements are that, on 1 March 2020:

(a) the individual was aged 16 years or over; and

(b) if the individual was aged 16 or 17 years - the individual was:

(i) independent within the meaning of section 1067A of the Social Security Act 1991; or

(ii) not undertaking full-time study (within the meaning of the Social Security Act 1991); and

(c) the individual satisfied the requirements in subsection (2); and

(d) the individual:

(i) was an Australian resident (within the meaning of section 7 of the Social Security Act 1991); or

(ii) was a resident of Australia for the purposes of the Income Tax Assessment Act 1936 and was the holder of a special category visa referred to in the regulations under the Migration Act 1958 as a Subclass 444 (Special Category) visa.

Nomination requirements

(4) The requirements are that:

(a) the individual has given to the entity a notice (the nomination notice ) in the approved form stating that:

(i) the individual satisfies the requirements in subsection (3) and in paragraph (b) of this subsection in relation to the entity; and

(ii) the individual agrees to be nominated by the entity as an eligible religious practitioner for the entity for the purposes of the jobkeeper scheme; and

(b) at the time the individual gives the entity the nomination notice:

(i) the individual satisfies the requirements in subsection (2) in relation to the entity for the fortnight in which the time occurs; and

(ii) the individual is not an employee (other than a casual employee) of another entity; and

(iii) the individual is not excluded under subsection (5) from being an eligible religious practitioner for the entity for the fortnight in which the time occurs; and

(iv) the individual has not given any other entity, or the Commissioner, a nomination notice under this subsection or subsection 9(3) or 12(4).

Note: If an overpayment results from an individual nominating with 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.

Exclusions

(5) An individual is excluded from being an eligible religious practitioner for an entity for a fortnight if:

(a) parental leave pay is payable to the individual and the individual's PPL period overlaps with, or includes, the fortnight; or

(b) at any time during the fortnight, the individual is paid dad and partner pay; or

(c) all of the following apply:

(i) the individual is totally incapacitated for work throughout the fortnight;

(ii) an amount is payable to the individual under, or in accordance with, an Australian workers' compensation law in respect of the individual's total incapacity for work;

(iii) the amount is payable in respect of a period that overlaps with, or includes, the fortnight.

12C Payment condition

(1) For the purposes of paragraph 12A(1)(e), an entity satisfies the payment condition in respect of an individual for a fortnight if:

(a) in the fortnight, the entity makes one or more payments to the individual from which an amount must be withheld under section 12-47 in Schedule 1 to the Taxation Administration Act 1953; or

(b) in the fortnight, the entity provides either or both of the following to the individual:

(i) a fringe benefit (within the meaning of the Fringe Benefits Tax Assessment Act 1986);

(ii) a benefit (within the meaning of the Fringe Benefits Tax Assessment Act 1986) that is an exempt benefit for the purposes of that Act.

(2) If there is a regular period for which the entity would usually pay religious practitioners, and that period is longer than a fortnight, then in applying this section those payments are to be allocated to a fortnight or fortnights in a reasonable manner.

(3) For the purposes of this section, the Commissioner may treat a particular event that happened in a fortnight as having happened in a different fortnight or fortnights, if, or to the extent that, it is reasonable to do so in the Commissioner's opinion.


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).