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Becoming ineligible for JobKeeper as a sole trader

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Newbie

Views 2415

Replies 7

I have a question regarding ongoing eligibility for Jobkeeper as a Sole Trader, I keep seeing conflicting information in different guides.

 

In the JobKeeper guide for Sole Traders it says:

"Each month, you must reconfirm the eligibility if your business and your reported eligible employees.

You must also provide information as to your current and projected GST turnover. This is not a retest of your eligibility, but rather an indication of how your business is progressing under the JobKeeper Payment scheme"

https://www.ato.gov.au/general/jobkeeper-payment/In-detail/JobKeeper-guide---sole-traders/#Step3Make...

 

This quote seems to say you need to state your eligibilty each month, but then that you do not need to prove your eligibility. Other guides do not include the part saying you need to reconfirm your eligibilty at all.

 

Does this mean you only need to be eligible once at the start of JobKeeper? Or that you will need to confirm you have a drop in income of 30% every month to recieve ongoing payments? If you do become ineligible one month because you manage to score a small gig and you have lumpy income, can you become eligible the following month when your income drops again?

 

For instance if you're a builder and get paid $10,000 in March last year to build a deck on someone's house and $0 March this year obviously you will be eligible, but April 19 you make $0 while you're doing the building, and this year in April you manage to get a job for $200 fixing someone's gutter, how do you account for this? The guides and information seem to only account for traders and businesses with very regular income.

 

Cheers,

Nick

 

1 ACCEPTED SOLUTION

Accepted Solutions
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Most helpful response

Master

Replies 1

Have a read at section 8 it explains it so it is only at test time so there is only one test time

An entity satisfies the decline in turnover test at a time (the test time) if:

https://www.legislation.gov.au/Details/F2020L00419
7 REPLIES 7
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Master

Replies 5

Test gets done once but you may stop having eligible employees or decide to close and terminate your business so you will no longer be eligible for jobkeeper that is how I read the rules from legislation and what the ATO has on its website.

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Newbie

Replies 4

Hi Denz,

Thanks for your reply.

I suppose im wondering do you need to have an ongoing loss of more than 30% every month, or just the first month when you register?

If you do happen to get a one off job does this make you inelligible that month to recieve the payment? And if so, do you become elligible again the following month if there is no further income?

 

The ATO has been quite vague in its documentation regarding ongoing eligibility.

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Master

Replies 3

No only in that month that you have nominated.

Again the eligibility is determined at the time you apply. There are only few exclusions but getting another job is not one of them.
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Newbie

Replies 2

I've been searching high and low for confirmation of this on the ATO website, can you point to any documentation confirming this this?

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Most helpful response

Master

Replies 1

Have a read at section 8 it explains it so it is only at test time so there is only one test time

An entity satisfies the decline in turnover test at a time (the test time) if:

https://www.legislation.gov.au/Details/F2020L00419
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Newbie

Replies 0

Hi Denz,

 

That does seem to say you only need to qualify at test time.

 

Though section 16-1 states:

"An entity that has qualified for the jobkeeper scheme (see section 7) at a time must notify the Commissioner in the approved form of the matters set out in subsection (2) within 7 days of the end of a calendar month (the reporting month) if the entity is entitled to a jobkeeper payment for a fortnight that ends in the month."

 

But doesn't say if this entitlement is judged as the initial test, still having an ongoing loss of 30% every month or judged by some other factor, like still having an entitled employee or not having gone out of business entirely.

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Community Support

Replies 0

Hi @nbree

 

Thanks for contacting ATO Community. Sorry for the delayed response, I hope the situation has been sorted, if not I hope this information helps you.

 

If it turns out that your projected turnover didn't reduce by as much as you thought it would, that is fine as long as you were honest with your original turnover reduction calculation. For more information about how to determine a fall in turnover and applying the turnover test, have a look at our website.

 

You only need to satisfy the turnover reduction requirement once – you don't need to retest your turnover each month. However, you will be asked each month to tell us your current and projected turnover.

 

If you satisfy the turnover reduction test for the first fortnight starting 30 March, you can claim the JobKeeper Payment for every fortnight of the scheme, even if your turnover improves over the six months.

 

Also if your eligible employees change or leave your employment, you need to notify us.

Follow the links for the relevant steps:

Notifying us on updates and changes allows us to keep the system fair for all Australians.

 

Again we apologies for the delayed response; I really hope this information helps you and you all remain safe and well.

 

MariR