The ATO has revised their position on employment termination payments (ETP) in connection with JobKeeper payments.
The updated position applies only to ETP’s made going forward, that is JobKeeper fortnight number six (i.e. 8th June 2020) onward. From this date, ETP’s cannot be included as part of a JobKeeper payment (I.E. an ETP does not contribute to meeting the $1,500 minimum payment threshold) and consequently cannot be claimed back from the ATO.
The ATO has further confirmed that, as this is a change of approach, it will not seek to recover any overpayments for employers who included an ETP in JobKeeper payments made to terminated employees between JobKeeper fortnights 1 and 5.
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Date of Issue: 12 June 2020 Author: Noé Vicca
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