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Business Start Up f o r Jobkeeper

Newbie

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Replies 1

Company business commenced trading 1 Feb 2020. It employees the sole director. Company has had a fall in turnover due to COVID19. Company is not registered for GST. Is the company eligible for job keeper based on no previous lodgement with the ATO but satisfies the alternative test requirements? So confusing. Example on ATO website indicates eligible.
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Most helpful response

Former Community Support

Replies 0

Hi @Angela3 

As a sole trader, you need to be an eligible entity and have an eligible business participant:

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 satisfied certain conditions at 12 March 2020, being
    • it had an ABN on 12 March 2020, and
    • it had lodged, on or before 12 March 2020, at least one of:
      • a 2018–19 income tax return showing it had an amount included in its assessable income in relation to it carrying on a business, or
      • an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing it made a taxable, GST-free or input-taxed sale.

If the business entity and the eligible business participant met all JobKeeper eligibility requirements, other than the requirements to hold an ABN and/or provide notice to the Commissioner of income or taxable sales by 12 March 2020, you should consider applying to the Commissioner to exercise his discretion to grant further time. See JobKeeper application for Commissioner’s discretion in respect of an eligible business participant.

You cannot enrol to receive a JobKeeper payment until you are notified that the Commissioner has granted the further time requested.

The alternative turnover test is just one of the criteria that needs to be satisfied.

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @Angela3 

As a sole trader, you need to be an eligible entity and have an eligible business participant:

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 satisfied certain conditions at 12 March 2020, being
    • it had an ABN on 12 March 2020, and
    • it had lodged, on or before 12 March 2020, at least one of:
      • a 2018–19 income tax return showing it had an amount included in its assessable income in relation to it carrying on a business, or
      • an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing it made a taxable, GST-free or input-taxed sale.

If the business entity and the eligible business participant met all JobKeeper eligibility requirements, other than the requirements to hold an ABN and/or provide notice to the Commissioner of income or taxable sales by 12 March 2020, you should consider applying to the Commissioner to exercise his discretion to grant further time. See JobKeeper application for Commissioner’s discretion in respect of an eligible business participant.

You cannot enrol to receive a JobKeeper payment until you are notified that the Commissioner has granted the further time requested.

The alternative turnover test is just one of the criteria that needs to be satisfied.