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Jobkeeper For Start Ups & New Businesses

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Initiate

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Hi there,

 

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, on or before 12 March 2020, 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 affected by COVID-19?

 

Any guidance would be greatly appreciated!

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Devotee

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It doesnt make you ineligbile no,

 

There's limited guidence on this at the moment because they are still working through the details.

 

Cases where an alternative turnover test may be appropriate include where the entity recently commenced a new business. Similarly, a relevant comparison period may not be appropriate for a business where it has had major structural business changes after the relevant comparison period. In these examples, the basic test may not accurately reflect the downturn in activity that the business has suffered.

 

https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/?anchor=Altern...

2 REPLIES 2
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Most helpful response

Devotee

Replies 1

It doesnt make you ineligbile no,

 

There's limited guidence on this at the moment because they are still working through the details.

 

Cases where an alternative turnover test may be appropriate include where the entity recently commenced a new business. Similarly, a relevant comparison period may not be appropriate for a business where it has had major structural business changes after the relevant comparison period. In these examples, the basic test may not accurately reflect the downturn in activity that the business has suffered.

 

https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/?anchor=Altern...

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Initiate

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Hi @Biggiesmalls 

 

Thanks for your input.

 

I've seen that the details of the alternative test have now been made available and I satisfy the criteria for new businesses established this FY.

 

However, the Jobkeeper online enrolment form still states that a sole trader must have either lodged a 2018/19 tax return or an activity statement prior to March 12, which is my source of confusion.

 

As a newly established business, I have not been required to lodge either of these but I'm wary of making a false statement on the application.