BAS reporting for sole trader business participant with zero employees

[#1]

I am a sole trader with zero employees and receive JobKeeper  as an "eligible business participant".

Is this payment to be reported on my BAS or only on my annual tax return as a government payment?

I have read many threads on here about BAS reporting and JobKeeper.  Some say include it at G1 on the BAS. Others say no, just include it on your annual tax return.

The ATO website says nothing about it.

Can the ATO provide an official response? Sole trader JobKeeper with zero employees - on the BAS or not?

[#2]

Sole traders and other entities may be eligible to receive the JobKeeper Payment if their turnover has reduced due to coronavirus. Following registration by the eligible business, the Government will provide $1500 per fortnight per eligible employee until 27 September 2020.

[#3 · Accepted solution]

Hi @JS-99 

Our website confirms that all JobKeeper payments are assessable income, as a sole trader they will need to be including on your personal income tax return. The JobKeeper payment is not required to be reported on your activity statement.

Good luck with everything.

[#4]

Hi @SueATO ,

Accordintg to @RoB7 (ATO), "JobKeeper payments are included as business income on the BAS".

Can the ATO decide whether JobKeeper payments go on the BAS or not?

[#5]

It's a good question and I'm looking to complete my first BAS since the JobKeeper payment as well. I found a mention on the ATO's web site that as a sole trader you need to include the payments as business income in your indivual tax return. Also I found Sue's advice to be confirmed in a couple of other places so this should clarify:

"The JobKeeper payments are considered assessable income for the business or individual receiving the payments. The assessable income will need to be reported in the relevant financial years income tax return. JobKeeper payments are not subject to GST and are not required to be reported on your BAS."

https://community.ato.gov.au/t5/Activity-statements/Jobkeeper-BAS-Label-G1/m-p/83593#M1436

"You are correct, the tax consequences for JobKeeper payments are that the payments are assessable income for the business or individual receiving the payments. All assessable income has to be reported on the relevant financial years income tax return, no tax has been withheld from JobKeeper payments. Assessable income is not reported on your BAS, and the JobKeeper payment is not subject to GST."

https://community.ato.gov.au/t5/COVID-19-response/JobKeeper-is-accessable-income/m-p/47699

[#6]

While you don't record it on your BAS at G1, if you're paying Income Tax instalments you would still need to report it at T1 (PAYG Instalment Income) and pay the appropriate instalment amount. Is this correct?

[#7]

JobKeeper payments should not be recorded anywhere on your BAS if you are a sole trader with zero employees and have registered yourself as a business participant (owner).

When you do your annual tax return, JobKeeper needs to be included within the section "Business/sole trader, partnership and trust income" under "Assessable government industry payments".

[#8]

This post was updated on 20 August 2020 to provide accurate information.

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Hi @BillP  @JS-99

If you're registered for quarterly PAYGI and you are already lodging a BAS every quarter, then the PAYGI fields will be added to the BAS.

• If you are using the amount option (option 1), then the amount to pay will be pre-filled at T7;
• If you are using the rate option (option 2), then you would fill in an income amount at T1.

JobKeeper payments are assessable as ordinary income so they fall within the definition of instalment income. See this related post is the JobKeeper subsidy included at T1 on the BAS?