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Re: Eligible Business Participant JobKeeper 2 Eligibility

Enthusiast

Views 936

Replies 6

If a sole trader was not eligible for Jobkeeper 1 due to late lodgment of 2018-19 income tax, will they be eligible for JobKeeper 2 if they meet the turnover criteria?

 

Thanks 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Enthusiast

Replies 0

hi @CasATO 

 

Thank you so much. This is more than enough. Will advise client accordingly. 

 

Kind Regards
Pasang

6 REPLIES 6

Former Community Support

Replies 5

Hi @Pk,

 

Are you sure you were not eligible for JK 1?

 

Just because you were late to lodge your 2019 tax return or didn’t lodge an activity statement with assessable income included doesn't necessarily mean you were ineligible to receive it at all.

 

There’s a section on the Sole Traders page suggesting applying for Commissioners discretion if you missed the 12 March deadline.

 

As for being eligible for JK 2 - extension - you will be eligible again, if you can meet the following requirements within each criteria list:

 

Hope this helps Smiley Happy

Enthusiast

Replies 4

Hi Cas

 

Client had ABN registerd before 2018 but started receiving business income only in 2019 financial year. 

We applied for commissioners discretion but that was of no use as ATO only focused on the lodgement due date. 

 

Just want to understand how commissionrs discretion works. 

 

Based on ATO criteria of meeting due date of 12 March as a lodgment due date, sole trader won't be eligible for JobKeeper 2 extension in my opinion. 

 

Based on the eligible entity criteria

As a sole trader, you are an eligible entity if:

  • on 1 March 2020, you carried on a business in Australia  - Yes 
  • you satisfy the fall in turnover test for the relevant period - Yes
  • you satisfied certain conditions at 12 March 2020, being 
    • you had an ABN on 12 March 2020, and  Yes
    • you had lodged, on or before 12 March 2020, at least one of    No
      • a 2018–19 income tax return showing an amount included in your assessable income in relation to carrying on that business, or

 

Thanks

PK

 

Former Community Support

Replies 3

Hi @Pk,

 

OK so as the ABN started in 2018 that’s great as the ABN should then have still been active as at 12/03/2020.

 

The 12 March deadline states we have discretion to grant further time, but only in limited circumstances, to: provide notice of assessable income or taxable supplies (meaning a tax return or BAS) during the relevant period to the Commissioner, where notice was not provided by 12 March 2020

 

So, what that means is:

  • if your ABN was active at 12/03/2020
  • and you didn’t lodge a 2018-2019 income tax return with assessable business income or a business activity statement with assessable income by 12/03/2020, BUT DID HAVE THAT INCOME from 01/07/2019...

 

You can apply for commissioner’s discretion to submit evidence proving that you did have business income between 01/07/2019 - 12/03/2020.


The evidence we would ask for is things like tax invoices, bank statements, business contracts etc.


This Commissioners discretion page is different from the first one I linked you, so take some time to read through here more info!

 

Let us know if there’s anything else you need clarified Smiley Very Happy

Enthusiast

Replies 2

Hi @CasATO 

 

Thank you for your prompt reply. 


Lets say sole trader was not eligible for Jobkeeper 1 as per ATO and we did not claim as well. 

 

Can we still apply for Jobkeeper 2 provided that business has met 30% fall in turnover by providing ATO with tax invoice, bank statement and business contracts to prove that business made taxable supply prioer 12/03/2020?

 

Kind Regards
PK

Former Community Support

Replies 1

Hi @Pk,

 

You're very welcome!

 

As JobKeeper is based on self-assessment you will need to view the JobKeeper extension eligibility criteria requirements and if you believe you are eligible you should apply.

 

If you can demonstrate that you can meet all the requirements from the 2 criteria’s I linked earlier for business entity and participant, then you will be eligible, you will just need to ensure you're aware of the payment changes based on Tier 1 or 2.

 

The lodgment requirement for JK extension is the same as the original scheme. In other words, if you didn't meet the lodgment requirement for the original scheme, you won't be eligible for JK extension either. If you did meet the lodgment requirement (as well as the other requirements), you are eligible for JK extension. If you believe you should be eligible but didn't lodge on time, I'll have to suggest the Commissioners discretion option again.

 

As you've mentioned again you have contracts proving you had taxable supplies prior to 12/03/2020, I still believe you should have applied for the commissioner’s discretion.

 

I’m sorry I can’t give you a definitive answer.

Most helpful response

Enthusiast

Replies 0

hi @CasATO 

 

Thank you so much. This is more than enough. Will advise client accordingly. 

 

Kind Regards
Pasang