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  • JobKeeper rule changes for child care providers

    From 20 July 2020, if you have employees who work for a child care subsidy (CCS) approved provider they will no longer be eligible for JobKeeper payments. This includes sole traders operating a child care service.

    Identifying staff that are no longer eligible

    To prepare for this change, if you have staff working in child care you should assess if their duties relate principally to the delivery of a CCS approved service. These duties could include:

    • educators
    • centre directors and managers
    • administration staff
    • cooks
    • cleaners
    • gardeners
    • research or advocacy staff.

    You must not continue to claim JobKeeper for your employees who are no longer eligible. We will not reimburse you for payments made to employees after JobKeeper fortnight 8 (6 July 2020 to 19 July 2020).

    If you are a business running mixed services

    If you run other activities in addition to a CCS approved provider, such as aged care, you may have employees that are still eligible for JobKeeper payments. If an employee has mixed duties, they will only be eligible if their principal duties are not CCS-related.

    If you have employees who undertake childcare related activities that are minor or secondary to their main responsibility, they may still be eligible for JobKeeper payments.

    For more information, including some examples of mixed businesses, visit Your eligible employees.

    JobKeeper extension for eligible mixed services businesses

    If you provide mixed services and have employees that were still eligible after 20 July 2020, you may be eligible for the JobKeeper extension for fortnights from 28 September 2020. Find out more at JobKeeper extension.

    There are two JobKeeper extension periods. You will need to meet an actual decline in turnover test to be eligible for each one. In calculating your actual decline in turnover you may need to consider whether government payments you received should be included in GST turnover.

    For example, in 2020 an approved provider of child care services may have received the following grants from the Department of Education, Skills and Employment (DESE):

    • the Early Childhood Education and Care Relief Package – this payment is not for a supply and therefore is not included in current GST turnover.
    • the Transition Payment paid between 13 July 2020 and 27 September 2020 – this payment is for a GST-free supply. To receive this payment, the approved provider entered into obligations with DESE. The payment is included in current GST turnover unless you’re an ACNC registered charity and have elected to exclude government grants.

    ACNC registered charities (other than universities or schools) may have elected to exclude government grants from their turnover calculations for the purpose of qualifying for the JobKeeper. Those that did not may be able to lodge a late election to exclude government grants from their turnover calculations.

    You can find more information on whether a government grant is for a supply at GST and grants.

    What to do next

    Find out the steps you need to take to stop receiving JobKeeper payments for your ineligible employees, visit JobKeeper guides.

    Last modified: 16 Oct 2020QC 63287