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Job Keeper 2.0, First supply after 31 December 2019.

Newbie

Views 989

Replies 14

I am wondering if JobKeeper 2.0 has any changes to the criteria that you had to have made a supply by 31 December 2019 (the tax period before 12 March 2020)

 

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(Copied criteria for reference)

 

" you had lodged, on or before 12 March 2020, at least one of    

  • a 2018–19 income tax return showing an amount included in your assessable income for 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 you made a taxable, GST-free or input-taxed sale.

 Note: 'tax period' has a specific meaning. For example, if you report GST on a quarterly basis, your last tax period before 12 March 2020 would be the quarter ended 31 December 2019. If you are not registered for GST, the quarter ended 31 December 2019 will be taken to be your last tax period.

_______

 

I am a Sole Trader who was deemed ineligible for JobKeeper because my first supply was on the 6th of January 2020. The ATO informed me that I had to have made a supply (even just $10) before 31 December 2019 to meet the eligibility criteria but unfortunatly I did not. 

It is very frustrating. My business was successful and I worked non-stop during January - March but, as my work is involves filming for corporates and events, obviously work has dropped by 30%. (So I do meet the 30% drop in operations for the three-month period of Jan - March)

I managed to get an amount of work again in July and August (still a 30% drop but enough to keep me afloat) but, as I am in Melbourne, I am now unable to work again (my job cannot be done from home and is "non-essential")

 

I have submitted my 2019-2020 tax return so I am wondering whether, as I can now prove my operations, I can somehow be eligible. Otherwise it is JobSeeker and applying for 20 jobs a month come December despite having a successful business (that I have been working towards for years and outlaid substantial money to start!)  to go back to when the restrictions lift...

 

-Thanks. 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 12

Hi @RachelMessT,

 

I get your frustration, the timing here is really unfortunate. However, the JobKeeper extension, is just that. It's an extension of what was already there. The criteria for entering the system hasn't changed in regards to the start date.

14 REPLIES 14

Most helpful response

ATO Community Support

Replies 12

Hi @RachelMessT,

 

I get your frustration, the timing here is really unfortunate. However, the JobKeeper extension, is just that. It's an extension of what was already there. The criteria for entering the system hasn't changed in regards to the start date.

Newbie

Replies 11

 
 
 
 
I am in the same position as @RachelMessT
 
 
 
 
 
 
 
 
 
 
 
 

 I started a new business, sole trader, had an ABN prior to 12 March, did not file for 

GST as was not required based on turnover, however, the business started operations after December.

 

Its very frustrating and unfair to know that other businesses that have had similar downfalls just about a month or so more into business are being kept on Job keeper. Others who have had 30% fall in turnover, may be still earning 70% of income and getting Job Keeper payments. In my situation, the revenues have be zero for the last so many months now. I am being marked ineligible as business started operations in 2020 only. Is there some other channel/forum/contact where this issue can be raised?

ATO Community Support

Replies 10

Hiya @CovidQuery,

 

Because the elibibility for JobKeeper is a matter of legislation, you would need to talk to your local member of parliament.

Newbie

Replies 9

 
 
 
 
 
 
 
 Thank you for the prompt response. Just wondering if there are other threads where this has been discussed, other people in the same situation as us? Has this issue been previously raised outside of ATO and if there are other references to it? I would greatly appreciate your response.
 

 

ATO Community Support

Replies 8

Hiya CovidQuery,

 

Unfortunately I wouldn't know where to point you. Any questions or queries I've seen previously have all been directed to go to their local MP.

Newbie

Replies 7

No worries, can you please indicate the part of legislation that states that there had to be income generated prior to Dec'19 to be eligible. 

Former Community Support

Replies 6

Hi @CovidQuery,

 

Thanks for replying.

 

The legislation is better read from our actual criteria requirements from our website so hopefully I can clarify this for you.

 

If you’re trying to self-assess whether you will be eligible for the JobKeeper extension 2 then you will need to satisfy the original decline in turnover test.

However, if you:

  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test and therefore will be eligible for JK ext. 2
  • are enrolling in JobKeeper for the first time from 28 September 2020, if you must satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.

 

You will notice that both; Original and Actual turnover tests; have their own individual tests for either Basic or Alternative.

 

Therefore, you will first identify whether you need to satisfy the Original or Actual turnover test, then from that selection, you will either use the Basic or Alternative test.

 

Tip:
The alternative test is used for:
If there were events or circumstances outside the usual business setting that resulted in your relevant comparison period in 2019 (September or December 2019 quarter) not being appropriate, then an alternative test may apply.


My opinion is you will need to use the alternative test based off what you said by "legislation that states that there had to be income generated prior to Dec'19 to be eligible" that you may not have had income before then, so this alternative test would be most appropriate for you.

 

I hope I've been able to clear things up for you Smiley Happy

 

Newbie

Replies 5

Thanks for putting in all the information. 

 

I have looked into all the details you provided as well as online information on the ATO page.

 

Going by the alternative test 1 and for business that started after 1st of Feb, 2020, and having a decline of >30% in income, I was given Jobkeeper only for April based my test period of April. However, there were no subsequent payments as I got a rejection mail from ATO.

 

Upon raising the matter, I was assigned to a case officer, notes of eligibilty were stated as under:

I was a sole trader & carrried business prior to March 2020 and were not running a business that was excluded; had ABN, had decline in turnover, had to have either income tax return or activity statement before March 2020. The only criteria I did not meet was the activity statement was not lodged as my annual turnover was not expected to be greater than the threshold limit. More specific to my situation as mentioned by the case officer in rejecting the Job keeper was that I did not meet the notice of taxable supply of rules i.e not registered for GST, defaulting to quarterly activity statement required for - 31st Dec, 2019. 

 

This is confusing, original test of decline was met, but for activity statement not lodged and required for Dec 2019 (my business only started in Feb). Following this, in Sept, I lodged tax for June ending period, as the officer mentioned there was nothing in tax records to show income and decline thereof.

 

There has been not a $ of income all through July to November and no Job keeper payments as well on account of the rejection. 

 

Can you please help me understand what is going on and whether anything needs to be done at our end.

 

 

 

 

 

ATO Community Support

Replies 4

Hi @CovidQuery,

 

 

To be an eligible entity as a sole trader, you must meet all eligibility criteria, including, at 12 March 2020:

  • you had an ABN on 12 March 2020, and
  • you had lodged, on or before 12 March 2020, at least one of  
    • a 2018–19 income tax return showing an amount included in your assessable income for 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 you made a taxable, GST-free or input-taxed sale.

If you do not meet these criteria, then you cannot be an eligible entity as a sole trader for JobKeeper.

 

If you disagree with this, as @StephATO has stated, you would need to speak to your local member of parliament.