Subject to certain eligibility criteria, the JobKeeper rules allow entities to nominate an individual who is actively engaged in the business to be the entity’s “eligible business participant”. In doing so, the business will receive JobKeeper support of $1,500 per JobKeeper fortnight where the eligibility criteria continues to be met.

However what happens where an entity needs to change its eligible business participant, say due to the death of the originally nominated individual, during the period of the JobKeeper scheme?

The way the rules are currently written, should an eligible business participant be unable to continue in that capacity, the entity would need to call the ATO on 1800 806 218, notify the ATO of the change, and cancel JobKeeper payments.

The specific sections in the JobKeeper rules that result in this outcome are section 11(3) whereby an entity cannot be entitled to JobKeeper assistance for more than one eligible business participant (whether for the same fortnight or a different fortnight).

And also section 12(4)(b)(iv) which requires that an individual providing a nomination notice so as to be nominated as an entity’s eligible business participant, state that no other individual has already satisfied the requirements as an eligible business participant.

Members should contact the ATO if they have clients facing this situation.