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Re: Jobkeeper Payments in relation to BAS business reporting !!

Initiate

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Replies 5

Hi, please an ACCURATE ANSWER as to whether Job Keeper payments are a) reportable in BAS due 28/7/2020 for March to June 20qtr. IF REPORTABLE IN BAS, PLEASE TELL ME WHERE TO REFLECT THESE PAYMENTS AND WHICH COLUMNS TO FILL IN THE BAS?? Since jobkeeper payments are non gst, if required to be reported in BAS, do I state jobkeeper payments under G3??, which is gst free sales! Bear in mind that Job Keeper payments received are NOT Sales income but a government financial assistance programme!
b) In the tax returns I will have to declare Job Keeper payments as Income?
c) The Job Keeper payments received will be distributed as wages to employees and a deduction for wages claimed in the annual return??

If the ATO has already have a ruling on the above please post the link in your reply! But please answer my questions specifically.

I have read many conflicting answers from this Community forum and I trust a accurate answer is forthcoming from my questions above.

Thank you.

DanPo
1 ACCEPTED SOLUTION

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Most helpful response

Former Community Support

Replies 4

Hi @DanPo,

 

Yes, JobKeeper is a temporary subsidy for businesses, not sales income. However, all JobKeeper payments are assessable income of the business, sole trader or individual that is eligible to receive the payments.

 

As you state, the JobKeeper payment is not subject to GST, so it is not required to be reported on your BAS.

 

You will need to declare the JobKeeper payments as income in your tax returns. For sole traders, Trust, and Partnership tax returns JobKeeper is declared at Assessable government industry payments.

 

Trust and Partnership tax returns would then report the distribution to the eligible business participant, who would declare that in their personal tax return as distributed income.

 

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.

 

You can find out more information here.

 

Kimo

5 REPLIES 5

Most helpful response

Former Community Support

Replies 4

Hi @DanPo,

 

Yes, JobKeeper is a temporary subsidy for businesses, not sales income. However, all JobKeeper payments are assessable income of the business, sole trader or individual that is eligible to receive the payments.

 

As you state, the JobKeeper payment is not subject to GST, so it is not required to be reported on your BAS.

 

You will need to declare the JobKeeper payments as income in your tax returns. For sole traders, Trust, and Partnership tax returns JobKeeper is declared at Assessable government industry payments.

 

Trust and Partnership tax returns would then report the distribution to the eligible business participant, who would declare that in their personal tax return as distributed income.

 

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.

 

You can find out more information here.

 

Kimo

Initiate

Replies 3

Hi Kimo.


I'm a little confused as I received and email today stating the following.

"If your business is a company, the payments need to be reported as income on your company tax return".

As I'm a Company, where on my Tax return do I report this?

My companies accounting method is Cash and I only have the ability to report total sales, GST on sales and GST on purchases.

Your urgent help would be greatly appreciated.

Thank you

Former Community Support

Replies 2

Hi @trancemit

 

As a company you do need to report this information on the company's income tax return. You will need to report your jobkeeper payments under label Assessable government industry payments.

Initiate

Replies 1

Thank you for your reply.

Unfortunately I do no have this option when I Lodge online. Where do I find this?


Thank you.

Former Community Support

Replies 0

Hi @trancemit,

 

Apologies for the late reply.

 

The business portal does not yet have an option to lodge a company tax return.

 

To lodge a company tax return, it must be completed either by:

 

Follow @LisaATO link for which label you report JobKeeper payments on, and here are the full step-by-step instructions on how to complete company tax return in case you needed it Smiley Happy

 

All the best!