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I am a sole trader and commenced business in January 2020. Due to COVID- 19, the amount of work I did reduce to nearly 30% of what I used to do in the months of Jan, Feb & March. Based on this, I applied the alternative turnover test and applied for job keeper and received for the month of April. When I declared for the month of May, my application was reviewed.
I received an email from ATO saying that I am ineligible as I don't have a comparison period in 2019. Hence I submitted an application objecting the outcome asking for a review with all my income details thus far. And also didn't receive a call from the ATO asking me for any information before providing this outcome
When I called the ATO today, they advised that I am ineligible for it (my request is still under review) as there is no comparison period in 2019. However, to wait until they get back to me.
But isn't the alternate turnover test applied so that we can work out based on the months worked prior to March 2020 to work out if there is a drop in turnover when there is no comparison period in the previous years?!
I am a bit confused with the information on the legislation and what the call centre provided. Hence asking for some clarification! Please help advise!
I can imagine this would be a very distressing. If you've received a letter saying that you're ineligible we'd recommend you gather any evidence of eligibility so that we can work with you to ensure that we make the right determination.
Hi @vasi77, I am in the same situation and know of many people who have received the same email and are waiting to hear back from the ATO.
There is literally an example on the ATO website which describes my situation, so I'm not sure how I can be ineligible.
If your business commenced on or after 1 February 2020, but before 1 March 2020
Douglas commenced business on 15 February 2020. He divides his current GST turnover for the month of February by 15, the number of days between and including 15 February and 29 February. He then multiplies that by 29 (the number of days in February 2020).
This figure is his average monthly GST turnover for February.
If Douglas uses April 2020 as his turnover test period, he compares his average monthly GST turnover for February with his projected GST turnover for April 2020 to determine if his turnover has declined by 30% or more (if his turnover is $1 billion or less).
If Douglas uses the quarter starting on 1 July 2020 as his turnover test period, he multiplies his average monthly GST turnover for February by three. He then compares that figure with his projected GST turnover for the July 2020 quarter to determine if his turnover has declined by 30% or more (if his turnover is $1 billion or less).
@dgh it is a bit confusing as the call centre information doesn't match the information on the legislation/info on the website, so is quite misleading. But I would've assumed they would've written to us by email/post asking for information prior to sending the email saying we're ineligible. I hope they get back to us or write to us this time if they want more information. Let's hope for the best!
I also received the email on Monday stating I was not eligible for JobKeeper, despite being a sole trader and receiving two previous payments.
I am lodging an objection today. One of my concerns relates to the wording in the enrolment application, which states:
- had assessable income in 2018-2019 income year and provided notice to the Commissioner on or before 12 March 2020 (which I did and I have).
In the email I received from the ATO, it states:
- an amount of assessable income for the 2018-19 income year in relation to carrying on a business
Note that in the application, it does NOT refer to 'in relation to carrying on a business'.
I appreciate the ATO are trying to find their way through this current chaos, however this is really not good enough.
Best of luck with your concerns.