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Job Keeper - Meaning of “actively engaged in business”

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I would like to understand what is meant by the phrase “actively engaged in business” for the purpose of determining eligibility for Job Keeper as a beneficiary of a trust. I am a beneficiary of an eligible trust but am currently (and was at 1 March) on paid paternal leave. Prior to going on leave I was actively engaged in the business. Would I be eligible for Job Keeper once my paid Parental leave payments come to an end or would I not be eligible because I wasn’t “actively engaged in the business” as at 1 March?
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ATO Certified

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Hi @RW1 thank you for your patience while we looked into this for you. You’re an eligible business participant of your entity for the fortnight if you meet the eligibility criteria and you’re actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).

 

Being ‘actively engaged in the business’ means that you were directly involved in operating and running the business during that time. Unfortunately since you were on paternal leave and in receipt of Australian Government Parental Leave Pay or Dad and Partner Pay  at 1 March 2020 you won’t be eligible to receive JobKeeper.

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Hi @RW1

 

Thanks for reaching out to us.

 

We are looking into this one for you now and will get back to you as soon as we can.

 

Thanks, ChrisR

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ATO Certified

Community Manager

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Hi @RW1 thank you for your patience while we looked into this for you. You’re an eligible business participant of your entity for the fortnight if you meet the eligibility criteria and you’re actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).

 

Being ‘actively engaged in the business’ means that you were directly involved in operating and running the business during that time. Unfortunately since you were on paternal leave and in receipt of Australian Government Parental Leave Pay or Dad and Partner Pay  at 1 March 2020 you won’t be eligible to receive JobKeeper.

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Newbie

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Hi NicolaC, 

I have a similar scenario except the sole trader in question was not in receipt of Australian Government Parental Leave Pay or Dad and Partner Pay on 1st March 2020 but they were on maternity leave on this date. See the scenario below: 

 

The sole trader went on maternity leave in mid-February 2020 with the intention to return to work in August/September 2020. They have a contract in place with the business they work for that remains active. During the period of leave they must ensure that they continue to meet the requirements of the contract including holding appropriate licenses and insurances. They must also continue to meet the continuing professional development/education requirements of their profession. The sole trader has and will not receive Australian Government Parental Leave Pay or Dad and Partner Pay as they are not eligible. 

 

Does this sole trader meet the requirement of being actively engaged in business for the purposes of the JobKeeper Payment? I note that an employee in this situation would be eligible for JobKeeper. 

 

 

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Hi Nicola C,

I also have a query on the definition of actively engaged in the business.
Our daughter who is a full time university student has a casual job and also has a personal ABN for another casual weekend contracting position. Her casual job only started early April 2019 so she does not qualify for Jobkeeper for that position. With the personal ABN contract position this is seasonal as she works as a first aid attendant at sports events. She was rostered on to start the work season, which runs from March to October each year, as at 1 March in the subsequent 2 week period but this was subsequently cancelled due to Covid 19.
So as she was rostered to do work at 1 March in the near future but this work was cancelled due to Covid 19, does she satisfy the actively engaged in the business rule? Thanks very much for your help.
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Hi  @LLHB and @Helpplease

 

Sorry for the delayed response, it can be frustrating so I hope this information helps.

 

Our JobKeeper guide for sole traders provides step-by-step information on how to enrol for the JobKeeper payment, as each entity is different, you can use this to determine, how to identify and maintain your employees and how to make a business declaration each month.

 

 

You need to be an eligible entity and have an eligible business participant. See the eligibility requirements for sole trader’s information on our website.

 

An eligible business participant needs to be actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming). If they were not active in the business at 1 March 2020, then they would not be eligible.

 

An eligible business participant cannot be an employee (other than a casual employee) of another entity. If a sole trader is both a long-term casual employee of another business and also an eligible sole trader, they can choose to either let their employer claim the JobKeeper payments on their behalf, or they can claim as a sole trader, but not both. Note: Sole traders can't be an employee of themselves because they are the same entity.

 

If you don’t have employees, consider nominating yourself as an eligible business participant. You can claim the JobKeeper payment for yourself if you are a sole trader.

 

The information in these links will go into more detail about how to work out your eligibility as a sole trader, partnership, trust or company; frequently asked questions and provide you with examples.

 

You can find out more by using the knowledge base for additional FAQ’s which are regularly being updated.

 

For more information in regards to any workplace entitlements and obligations you can go to the Fair work Australia website.

 

I hope this information is helpful and you remain well during this time.

 

MariR