Removal of JobKeeper from CCS approved services

UPDATED INFORMATION

The Commonwealth Department of Education, Skills and Employment (DESE) has updated its advice on the removal of JobKeeper from Child Care Subsidy (CCS) approved services from 20 July 2020.

The updated advice is:

My service delivers both Child Care Subsidy approved and non-Child Care Subsidy approved education and care and non-child care services. Are my employees who deliver non-Child Care Subsidy approved services still eligible for JobKeeper? 

Yes. JobKeeper will cease from 20 July 2020 for employees of a Child Care Subsidy (CCS) approved service and for sole traders operating a child care service. Employees working in the education and care sector organisations that deliver a mix of approved child care and other services, that are not working in delivering a CCS approved service remain eligible for JobKeeper.

CCSA comment

This means that services that operate a mixed model such as long day care and preschool under the one ABN will still be able to claim JobKeeper reimbursements beyond 20 July 2020, but only for those staff who are not working in the CCS approved part of the business.

For these types of organisations there are two key outcomes to be managed:

  1. The employer will be eligible for JobKeeper reimbursements for some staff but not others. This may result in some employees continuing to receive JobKeeper top up payments to $1,500 per fortnight before tax, while for other employee that ceases with effect the first pay on or after 20 July 2020. This is actually the current situation for many employers/employees where only some employees are eligible due to the range of eligibility criteria that apply to JobKeeper.
  2. JobKeeper enabling directions such as directions to take leave, perform other duties, work from another location or work reduced hours will only apply to those employees still eligible for JobKeeper. All other employees, including those previously in receipt of JobKeeper support, would revert to the previous provisions of the Fair Work Act 2009.

CCSA Business Solutions provides member clients with comprehensive support to meet their JobKeeper obligations, including payment calculations and reporting obligations to the ATO. For an obligation-free quote, please call 1800 991 602 or 02 4782 1470, Option 3.

CCSA Member Support is available to answer your JobKeeper and other regulatory compliance questions on 1800 991 602 or 02 4782 1470, Option 2.