Announcements
Have you sold crypto, shares or property? Our new capital gains tax guide has info about cost bases, calculations & more! Still got questions? Ask the Community!

ATO Community

Re: Lost full Sole Trader income but permanently employed elsewhere. Lost half income - no Jobkeeper

Newbie

Views 1976

Replies 9

I have 2 jobs to balance my budget  - I have lost 100% Sole Trader income due to COVID-19 restrictions, but am permanent employed elsewhere and still working in that job. I have lost half of my effective income, have THE SAME EXPENSES in my budget and yet (unlike casuals) I cannot apply for Jobkeeper for my Sole Trader income. It seems very unfair and I have been a Sole Trader for 17 years and pay full tax on both incomes. I do NOT claim the Tax Free Threshold on my permanent job (which I still have). Can this rule be adjusted or challenged as this is a real gap in the system? How can we apply for Jobseeker for the lost Sole Trader income (like casuals have the opportunity to do so). Casuals can work just a few hours ( as a second job) and get Jobseeker and yet a Sole Trader (in a similar situation) can't? 

Does the ATO or anyone have any clarification on this? Can there be cases that get considered?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 1

Hi @Mellyboo 

 

Thanks for contacting ATO Community.

 

It’s a really difficult time for many, so hopefully this information will be able to assist you.

To claim payments for April, you need to pay your eligible employees by 8 May and enrol online and identify your eligible employees by 31 May.

 

Our JobKeeper guide for sole traders provide step-by-step information on how to enrol for the JobKeeper payment, how to identify and maintain your employees and how to make a business declaration each month.

 

An eligible business participant cannot be an employee (other than a casual employee) of another entity. If a sole trader is both a long term casual employee of another business and also an eligible sole trader, they can choose to either let their employer claim the JobKeeper.

 

Fair Work has provided additional guidance on employee and employer obligations – see JobKeeper changes to the Fair Work Act that may assist you.

 

The government also has a range of ways to assist depending on what would be best for you and what you are eligible for.

 

If you aren’t eligible to be paid JobKeeper payments, you may be able to apply for support through Services Australia depending on your personal circumstances or even consider an early release of superannuation.

 

I really hope this information helps you and you remain safe and well during this difficult time.

 

MariR

9 REPLIES 9

Newbie

Replies 1

Can someone from the community please answer this question? I have no reply as yet.....ATO...can someone answer this for me please? Thanks!

Newbie

Replies 0

https://community.ato.gov.au/t5/user/viewprofilepage/user-id/15993  DO you have a any infrmation that n=might help me? Thank you

Most helpful response

Former Community Support

Replies 1

Hi @Mellyboo 

 

Thanks for contacting ATO Community.

 

It’s a really difficult time for many, so hopefully this information will be able to assist you.

To claim payments for April, you need to pay your eligible employees by 8 May and enrol online and identify your eligible employees by 31 May.

 

Our JobKeeper guide for sole traders provide step-by-step information on how to enrol for the JobKeeper payment, how to identify and maintain your employees and how to make a business declaration each month.

 

An eligible business participant cannot be an employee (other than a casual employee) of another entity. If a sole trader is both a long term casual employee of another business and also an eligible sole trader, they can choose to either let their employer claim the JobKeeper.

 

Fair Work has provided additional guidance on employee and employer obligations – see JobKeeper changes to the Fair Work Act that may assist you.

 

The government also has a range of ways to assist depending on what would be best for you and what you are eligible for.

 

If you aren’t eligible to be paid JobKeeper payments, you may be able to apply for support through Services Australia depending on your personal circumstances or even consider an early release of superannuation.

 

I really hope this information helps you and you remain safe and well during this difficult time.

 

MariR

Newbie

Replies 0

Hello all,

 

Addressing the issue of sole traders being ineligible because of permanent employment is an important issue that the ATO needs to address. There are many of us, as small business owners, that have permanent jobs to assist in earning money while we start or maintain small businesses as sole traders. For many, the hours we work in these permanent jobs on the side is minimal. If we are unable to access JobKeeper through our permanant employment AND we are unable to access through our sole trader position then we are put in an incredibly diffiult position financially. We are also ineligible for Services Australia payments because we hold permanent employment that interfere with the income test (particularly if partnered).

I hold one casual job (state government), one permanent part time position at a community legal centre (federally funded) and have a sole trader business. I earned the majority of my income via my sole trader business. I am no longer able to work my casual position with state government as the gallery I worked at is closed. The permanant part time position I hold is only contracted for 12-16 hours per week and I am ineligible for JobKeeper through this job as it is a NFP that is funded by the federal government and does not meet eligibility criteria.

 

I am also rendered ineligible for JobKeeper due to to the fact that I hold a permanant position at the NFP (that is ineligible for JobKeeper). I have lost virtually all my income from my sole trader business (which was my primary income) and the income that I bring in from my permanent part time position, being only 12-16 hours per week only just covers rent, food and other essential expenses. In addition to this I have ongoing expenses for my business that I still need to meet.

 

I do not believe that it was the intention of this policy to exclude those that earn minimal income from their part time positions. Using 'permanent' as a cut off criteria is arbitrary and lets many fall between the cracks. There has been a grave error in not recognising that sole traders with permanant part time positions may still earn the majority of their income through their sole trader business. It also fails to recognise that there are many that cannot access JobKeeper through their permanant part time positions, and that sick and holiday leave offer little consolation during times of financial stress, when the source of primary income from sole trader business has been lost.

It would be greatly appreciated if the ATO could please acknowledge and recognise that this eligibility criteria cuts out many sole traders that are currently doing it extrememly tough financially, with permanent positions offering little relief financially.

 

Many thanks for your attention to this issue.

 

Cheers, EG.

Initiate

Replies 4

I am in a very similar situation and find these rules completely unfair and is affecting a lot of people who are self employed, but may also support themselves with some part time work somewhere else. Ridiculous, yet a casual can qualify.

Newbie

Replies 3

Yes, It has bee terrible for sole raders, adn yet our foxed costs remain the same!

ATO Community Support

Replies 1

Hi @Cousins and @Mellyboo,

 

Thank you for your posts. Whilst you are not eligible under your Sole Trader business you may work for an eligible employer. If they advise you're an eligible employee they can claim JobKeeper on your behalf. If you haven't already done so you may wish to have a conversation with your employer.

 

Hope this helps.

 

Regards,

Jodie2.

Initiate

Replies 0

Thanks for that but no I’m not working for an eligible employer as I am a healthcare worker working at a hospital so they are not involved in job keeper / nor have my hours been affected there. So I’m still stuck with only half an income because of this rule.

Former Community Support

Replies 0

Hi @Cousins,

 

There have been quite in similar circumstances, and I understand your pain. The best point of attack if you wish to give feedback to try to create change would be to speak to your local Federal Member of Parliament, as we at the ATO only administer the payments pertaining to the legislation passed by the Government. Thank you for reaching out to us, and I wish you all the best.