JobKeeper Stimulus Alert – Employing 16 and 17 Year Old Full-time Students

27th April 2020

Are you employing 16 and 17 year old full-time students and have registered for JobKeeper?

The Government is clarifying the operation of the rules in relation to many aspects of the JobKeeper payment, and this is just one of them.


Full time students aged 16 and 17 years old:

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.

It would be our recommendation that you hold off making any top-up payments to these employees until further clarification and certainty is available. We have until 30 April to make these payments so it is anticipated that clarification should be available today or tomorrow. This is really just a heads up to hold off if you were intending to process in the coming days.

If you have already made these payments, the fact that any clarification will apply prospectively implies that you will still be refunded for these particular payments.

We will keep you posted as further clarification is available.


Extension of time to enrol for the JobKeeper scheme:

Please note the Commissioner has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.


JobKeeper to address service entities:

Corporate groups that employ staff in a service entity will now be included in the JobKeeper scheme under a yet-to-be-announced alternate decline in turnover test.