JobKeeper Payment for Business Participants

17th April 2020

 

Are you a business participant? The JobKeeper Payment may help you.

 

A business participant is a sole trader, a partner in the partnership, an adult beneficiary of the trust, a shareholder or director in the company.

The entity, not the eligible business participant, receives the JobKeeper payment. The exception is a sole trader, who is both the business entity and an eligible business participant, and so receives the JobKeeper payment themselves.

 

Your entity is eligible if:

– on 1 March 2020, it carried on a business in Australia;

– it satisfies the fall in turnover test for the relevant period;

– it satisfies certain conditions as at 12 March 2020, being:

a) it had an ABN on 12 March 2020, and

b) it had lodged, on or before 12 March 2020, at least one of:

i) 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it carrying on a business, or

ii) an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that it made a taxable, GST-free or input-taxed sale.

So you do NOT need to be registered for GST. You just have to have had a business income in your 2019 return.

 

Your entity needs to enrol by the end of April for payments in either the fortnights starting 30 March 2020 or 13 April 2020.

Additional information on notification and reporting requirements will be available soon.

 

Examples can be read here – https://www.ato.gov.au/General/JobKeeper-Payment/Sole-traders-and-other-entities/#Eligiblebusinessparticipant1

 

And as always – should you require assistance, we are here to help.