Announcements
Are you a tax professional needing a bit more time to lodge? Check out how to apply online for a deferral, or ask the Community!

ATO Community

Jobkeeper eligibility if sole trader on a salary?

I'm new

Views 634

Replies 1

Hi there

I’ve had an ABN for over six years, however, for nearly the entire length of the tax year 2018-2019 I accepted a full-time salary contract that ended May 2019. This means my ABN as a sole trader didn’t technically earn anything...

I went back to being a freelancer since May 2019, so all my earnings are in this current tax year. As of beginning of February 2020 I have zero incoming work due to everything being shut down.

Does ALL my income from 2018-2019 count towards being eligible for the Jobkeeper payment regardless of where it came from?

I’ve scoured ATO, community, govt sites on this and can’t find an answer to this question, apologies if it’s a repeat somewhere.
Cheers
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

It is only you business income that is included when testing to see if your income has dropped by the required percentage to enable you to receive Job Keeper.  Your salary income is ignored.

 

Most available information talks about comparing your turnover for a month or quarter from early 2020 to the same period in 2019.  However, some businesses, such as yours, were not operating in early 2019.  There is scope in the rules to use an alternative comparison in such cases.  To date, I have not seen any official advice on this.

 

The ATO website includes the below information, hopefully better details will be provided soon.

 

"The Commissioner of Taxation also has the discretion to set out alternative tests that can establish your eligibility when turnover periods are not appropriately comparable (for example, if your business has been in operation less than a year). We will provide more information soon about alternative tests."

 

1 REPLY 1

Most helpful response

Devotee

Replies 0

It is only you business income that is included when testing to see if your income has dropped by the required percentage to enable you to receive Job Keeper.  Your salary income is ignored.

 

Most available information talks about comparing your turnover for a month or quarter from early 2020 to the same period in 2019.  However, some businesses, such as yours, were not operating in early 2019.  There is scope in the rules to use an alternative comparison in such cases.  To date, I have not seen any official advice on this.

 

The ATO website includes the below information, hopefully better details will be provided soon.

 

"The Commissioner of Taxation also has the discretion to set out alternative tests that can establish your eligibility when turnover periods are not appropriately comparable (for example, if your business has been in operation less than a year). We will provide more information soon about alternative tests."