Our ATO Community is here to help make tax and super easier. Ask questions, share your knowledge and discuss your experiences with us and our Community.
This seems to have been asked a few times with no clear answer so I'm hoping to get some clarity now that the enrolments forms are online for myself and other start-up businesses in a similar position.
I'm a sole trader operating a small marketing business that's been in operation since October 2019. Due to the current crisis, my turnover has significantly reduced (by more than 30%) during March and April.
My business meets all the eligibility criteria for Jobkeeper except that I have not lodged at least one of:
- a 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it 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 that it made a taxable, GST-free or input-taxed sale.
Since my business was only established this financial year I couldn't have lodged a tax return for last year and since I am currently under the GST registration threshold, I am not required to lodge a monthly BAS.
Surely the Jobkeeper scheme does not exclude start-ups and other newly created businesses?
Any guidance would be greatly appreciated!
I did see the alternative test and I satisfy the criteria for the reduction in turnover, which is great.
However, the enrolment form still states that a sole trader needs to have submitted a 2018/2019 tax return OR lodged a BAS before March 12, which seems to exclude new businesses who are not required to be registered for GST.
Hopefully we get a clear answer soon!
Thanks for your reply and for your patience.
We still don't have an answer to your question about the enrolment form, but we have been advised that they are working on it. We expect that our information will be updated soon so keep an eye on the JobKeeper guide for sole traders and the sole traders and other entities page on our website.
Enrolments for the first two JobKeeper fortnights have been extended to 31 May so there is plenty of time.
Good luck with it all.
My wife has had several conversations on the phone with ATO regarding this exact issue. She has been told that she is not eligible over the phone but has received nothing in writing.
It seems strange that new small business's are not receiving the same support, if not more, as established business's considering they are at much higher financial risk.
Thanks for joining the conversation and for your patience.
While we didn't have an answer to this question back in May, we do now. We have discretion to grant further time to business entities that don't meet the 12 March deadline, but only in limited circumstances. For more information about Commissioner's discretion, have a look at our website.
You will see that there are a number of circumstances where your wife won't need to seek discretion. Where your wife's circumstances don't fit into one of the outlined categories, an application for Commissioner's discretion can be submitted.
It is important to note that it depends on what your wife's circumstances are as to whether an application for Commissioner's discretion will be successful.
All the best.