ATO Community

Re: JobKeeper

Newbie

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Replies 5

When should I be recognising the JobKeeper payments as income for tax purposes when it's paid in arrears?  At 30/06/2020, I'll be owed JobKeeper payments that won't be paid until July.  Assuming I'm on an Accruals basis, do I recognise the income in June or July?

 

Is the answer different if I'm on a Cash basis?

 

You should provide some definitive guidance about this on your website

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Most helpful response

Community Manager

Replies 2

Hi @JV519 and @Biggiesmalls we have checked this with our technical team.

 

For a business entity operating on an accruals accounting basis, JobKeeper payments for the month of June will be derived in the month in which you provide a valid completed business monthly declaration for June. This will generally be in July (or a later month) and will be assessable in the 20/21 income year.  

 

For a business entity operating on a cash accounting basis, the payments for a JobKeeper fortnight in the month of June are derived when the entity receives those payments. For JobKeeper payments received in July (or later) it will be assessable in the 20/21 income year.

5 REPLIES 5

Community Moderator

Replies 0

Hi @JV519 

 

This is being looked into keep an eye on the website for updates.

Devotee

Replies 0

All JobKeeper payments are assessable income of the business that is eligible to receive the payments. The normal rules for deductibility apply in respect of the amounts your business pays to its employees where those amounts are subsidised by the JobKeeper payment.

 

To help with the decrease in turonver calculations it seems like the ATO is giving you the choice to choose between cash and accruals. From what ive read they would expect you to use the same method to report any payments,

 

Did you use cash or accruals to method to calculate? there would be a difference between the two as cash is when you recieve the cash or spend the cash where as accruals is when you receive the invoice / send the invoice or cash - whichever comes first

Most helpful response

Community Manager

Replies 2

Hi @JV519 and @Biggiesmalls we have checked this with our technical team.

 

For a business entity operating on an accruals accounting basis, JobKeeper payments for the month of June will be derived in the month in which you provide a valid completed business monthly declaration for June. This will generally be in July (or a later month) and will be assessable in the 20/21 income year.  

 

For a business entity operating on a cash accounting basis, the payments for a JobKeeper fortnight in the month of June are derived when the entity receives those payments. For JobKeeper payments received in July (or later) it will be assessable in the 20/21 income year.

Enthusiast

Replies 1

Is this the same for the Cashflow Boost?

 

Or is it recognised with the relevant PAYGWithholding period it applies to?

 

 - Cam

ATO Community Support

Replies 0

Hi @Cam_jp,

 

You can find all the information on tax implications on the Cashflow Boost and reporting under Cash flow boost tax time essentials.

 

You don't pay tax on the cash flow boost credits as they are non-assessable non-exempt income, but you may need to report the amounts in your tax return for other purposes.

 

Links

Cash flow boost tax time essentials.