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Re: Jobkeeper on Activity statements

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Initiate

Replies 3

Hi,

 

I know G1 definitely does not include the jobkeeper payment because jobkeeper doesn't include GST. The question was always about G3 which is for GST free sales income. But I don't believe it is Sales Income, so then it shouldn't be recorded at G3 either.

 

As a business participant, I don't do my PAYG on the BAS, so some people paying their employees the jobkeeper will include it on the BAS at W1, but I don't believe I do.

 

I had someone else from the ATO tell me that the payment is not on the BAS and this makes sense that it is only recorded as outgoings at W1 if it was paid to an employee.

 

If there is any update from the ATO, I haven't found it, and currently have time to update my quarterly BAS but not for long. I think this should have been put in writing (published) instead of being left up to our own logical discussions. The ATO has been quite slack in this department, but obviously they do have a lot going on.

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Community Support

Replies 2

Hi @picokit ,

 

You're correct that JobKeeper payment isn't included at G1. It's also not included at G3 (GST free income) as you're right in deducing it's not sales income.

 

Employers with employees will report the employees' salary and wages at W1 and withholding at W2. The JobKeeper scheme works as a reimbursement for eligible employers when they've paid their eligible employees the minimum $1500 a fortnight. Employers receive the JobKeeper reimbursements for the JobKeeper payments they've made to their eligible employees in the previous month. They claim the reimbursements by lodging their business monthly declaration.

 

As an eligible business participant you're either a sole trader or a non-employee individual who is actively engaged in the business of the entity (e.g Director of a company who is not an employee). You won't report the JobKeeper payments you receive on your BAS as they're not sales and withholding doesn't apply as you're not an employee.

 

A sole trader will include the JobKeeper payments in their Business/sole trader income on their tax return.

 

JobKeeper payments received by an entity for an eligible business participant include the amounts in their business income on the entity's tax return. The entity claims a deduction for amounts distributed to the eligible business participant and those distributed amounts become part of the eligible business participants income on their individual tax return.

 

Employers include the JobKeeper payments on their entity's tax return as part of their business income, see:

Employers claim a deduction for operating expenses from employing people (e.g salary and wages) on their entity's tax return.

 

Thanks and I hope this clarifies,

JasonT

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Enthusiast

Replies 1

Hi, may i please ask whether Jobkeeper received should be included in PAYG instalment income in the BAS? 

 

Many thanks

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Community Manager

Replies 0

Hi @Thai,

 

JobKeeper payments are assessable income so will be reported on your tax return, but are not included on your Activity Statement under PAYG-I (or T labels) - as answered in this thread.