If you are a Non-Employee individual, you are eligible for JobKeeper assistance if you are an eligible business participant of your entity. To do so you need to meet all of the following criteria:
- You are an individual not employed by your entity.
- You are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
- You are one of the following (at 1 March 2020 and for the fortnight you are claiming)
- A sole trader
- A partner in the partnership (Only one partner per partnership)
- An adult beneficiary of the trust (Only one beneficiary per trust)
- A shareholder or director in the company (Only one shareholder or one director per company. Not one of each)
- As at 1 March 2020, you are both
- Aged at least 16, and
- An Australian resident (within the meaning of section 7 of the Social Security Act 1991), or a resident for income tax purposes and the holder of a special category (Subclass 444) visa
- You are not currently
- Receiving government parental leave pay or dad and partner pay
- Totally incapacitated for work and receiving payments under an Australian workers’ compensation law in respect of your incapacity to work
- An employee (other than a casual employee) of another entity Updated by the ATO 19/04/2020 https://www.ato.gov.au/General/JobKeeper-Payment/Sole-traders-and-other-entities/#Eligiblebusinessparticipant1
- Personally receiving JobKeeper assistance in any other form
On this basis you are an eligible business participant: Once eligible, the decline in turnover test requires a decline threshold of 30% (for those with turnover of <$1b). You can compare any comparable period to determine the commencement of JobKeeper entitlements. Examples for current periods are to compare any of the following:
- GST turnover for March 2020 with GST turnover for March 2019
- Projected GST turnover for April 2020 with GST turnover for April 2019
- Projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.
How you choose to project your fall in turnover is not dependent on whether you report a quarterly or monthly BAS, though you can do that if it is easier.
Once it is determined that you qualify for the JobKeeper payments the first time because your turnover has declined by the relevant amount, you remain eligible and do not need to continue testing turnover in following months.
Receiving JobKeeper: In order to receive JobKeeper payments from the first week of May, self-employed claimants need to:
- Meet all eligibility requirements, as outlined on the https://www.ato.gov.au/General/JobKeeper-Payment/Sole-traders-and-other-entities/#EntitiesnominatingforJobKeeperpaymentsfo
- Enrol in the JobKeeper Payment program, once the enrolment process is opened on 20 April.
- When you submit your enrolment to the ATO, the ATO will provide you with an acknowledgement and acceptance of your enrolment into the JobKeeper program based on the information you have provided.
Note: Notification and reporting requirements for self-employed have still not issued. However, the ATO have advised that it will be available soon.
Date of Issue: 17 April 2020 Author: Noé Vicca
Disclaimer: The contents herein are intended for general information only and should not be construed as legal or accounting advice. Vicca Chartered Accountants Brisbane bears no responsibility for any loss that might occur from reliance on information contained in this publication. Please do not reproduce, transmit or distribute the contents herein in any form without prior permission from Vicca Chartered Accountants, Taxation Accountants Brisbane Australia.