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June jobkeeper counted in which financial year?

Initiate

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Hi, I'm just about to pay my final quarter tax for the current financial year. As a sole trader I will receive June's jobkeeper payment in July. For income and tax payment, do I include June's jobkeeper payment in the current financial year or next financial year as I get it in July? Thanks in advance
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Former Community Support

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Hi @Andrew8 ,

 

The key point is found in paying your eligible employees, under section, "Operating on a cash accounting basis", quoted here -

"For JobKeeper fortnights ending in June, those payments will be made in July (or later), following receipt of the entity’s business monthly declaration, and will be assessable in the 2020–21 income year." (bold, italics added).

 

 

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Devotee

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It will be in the current financial tax year (not the one coming up) because the payment relates to June 2020. In much the same way, if I invoice clients in June, but they only pay in July (or never) I still have to include that income as outstanding debtors for the June month and then pay tax on it.

Initiate

Replies 2

Thanks for your reply. Under the ato terms found here:
https://www.ato.gov.au/Business/Income-and-deductions-for-business/Assessable-income/Accounting-meth...
I invoice clients on cash basis not accruals basis so only payments made are counted, not due payments. I guess my question more relates to as the payer is the ato, will the deem it as being paid now or in the next financial year?

Most helpful response

Former Community Support

Replies 1

Hi @Andrew8 ,

 

The key point is found in paying your eligible employees, under section, "Operating on a cash accounting basis", quoted here -

"For JobKeeper fortnights ending in June, those payments will be made in July (or later), following receipt of the entity’s business monthly declaration, and will be assessable in the 2020–21 income year." (bold, italics added).

 

 

Initiate

Replies 0

Thank you very much