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Jobkeeper - change of ownership, new company created in Sept 2020

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I've just bought a business that was getting JobKepper.

 

The ownership of the IP & assets has been transferred. The staff have transferred. The new business did not buy the old "company" - it is being closed down. The new company was created in Sept 2020.

 

I am confused as to whether the new company is eligable for JobKeeper. Lots of posts here seem to say that it is because it takes on the employees of an entity that was eligible in the past

 

https://community.ato.gov.au/t5/COVID-19-response/JobKeeper-for-purchase-of-new-going-concern-busine...

https://community.ato.gov.au/t5/COVID-19-response/Purchase-a-business-as-going-concern-already-on-Jo...

 

Looking at the latest "Coronavirus Economic Response Package (Payments and Benefits) Rules 2020" it seems the new company is not eligable for JobKeeper because it was not trading as at 1st March 2020 (7 (1) (a)).

 

Further down it appears the employees would be eligable from section (9) (6) - "businesses that change hands etc".

 

Is the new entity eligable for JobKeeper? My reading is that the employees would be but the employer (new entity) would not be.

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Most helpful response

Former Community Support

Replies 0

Hi @lovemakingstuff,

 

The issue, in my understanding, is that the entity that that originally enrolled with employees, will soon no longer exist . Thus, the ABN, and entity name will be different, then when originally applied for Jobkeeper. Unfortunately, if you apply now then it is too late (passed the 1st March cut-off date).The webpage, Eligible employers, explains that this business needs to be operating as at 1 March 2020.

 

The two links you stated in your previous response, were in reference to businesses still in operation and trading, but you stated that you didn't 'buy' the business, it is about to be shut down, so there's a difference there. I have answered a similar question on this ATOCommunity thread re restructure (especially Pt 1.). I don't see how employees can be still eligible when the employing entity has no connection with them anymore?

 

If you are unhappy with our response or wanted further clarification, you are welcome to request advice from our Early engagement team.

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @lovemakingstuff,

 

The issue, in my understanding, is that the entity that that originally enrolled with employees, will soon no longer exist . Thus, the ABN, and entity name will be different, then when originally applied for Jobkeeper. Unfortunately, if you apply now then it is too late (passed the 1st March cut-off date).The webpage, Eligible employers, explains that this business needs to be operating as at 1 March 2020.

 

The two links you stated in your previous response, were in reference to businesses still in operation and trading, but you stated that you didn't 'buy' the business, it is about to be shut down, so there's a difference there. I have answered a similar question on this ATOCommunity thread re restructure (especially Pt 1.). I don't see how employees can be still eligible when the employing entity has no connection with them anymore?

 

If you are unhappy with our response or wanted further clarification, you are welcome to request advice from our Early engagement team.