Employment terminations payments not counted as part of JobKeeper payment

June 25, 2020

The ATO has clarified its position on employment termination payments (ETPs) in regard to JobKeeper payments and employees who have been terminated or made redundant. From JobKeeper fortnight 6 (8 June onwards) until the end of the scheme, ETPs cannot be included as part of the $1,500 an employer makes to eligible employees and claims as a JobKeeper reimbursement from us.

If JobKeeper payments that included an ETP were paid to a terminated employee between JobKeeper fortnights 1 to 5 (from 30 March to 7 June), the ATO will not recover an overpayment that has occurred as a result of these payments.