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New Businesses / Start Up and Job Keeper Eligibility

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Dynamo

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Replies 6

Hi All, 

 

I'm a sole trader with no employees. I started my biz in August 2019 and therefore have no tax information for the last financial year related to my business.

I'm wondering about new businesses and start ups eligibility for the JobKeeper payment. 

As a wedding florist, my income is now zero and I'm worried with the new eligibility criteria it doesn't say anything about 'ATO Discretion' which is use to say. It's mentioning we must have done a 2018-19 tax return with a business related claim in it OR have submitted our GST / BAS (which many new businesses don't need). Thoughts? 

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Best answer

Master

Replies 2

ATO have said they will determine an alternative test for fall in turnover where there is not an appropriate relevant comparison period. They have specifically called out new businesses - we will be making a legislative instrument to deal with new businesses in operation less than a year, and some other circumstances such as businesses who had a temporary fall in turnover in 2019 due to drought. This will be available soon.

 
 
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Initiate

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I started my business around that time as a sole trader and seeking calrification as well 

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Initiate

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This is what it states on the ATO website in the sole trader section 

 

Eligible business participant

Your non-employee individual is an eligible business participant of your entity for the fortnight if they meet all of the following:

  • They are an individual not employed by your entity.
  • They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
  • They are one of the following (at 1 March 2020 and for the fortnight you are claiming)
    • a sole trader
    • a partner in the partnership
    • an adult beneficiary of the trust
    • a shareholder or director in the company.

 

  • As at 1 March 2020, they are both
    • aged at least 16
    • an Australian resident (within the meaning of section 7 of the Social Security Act 1991), or a resident for income tax purposes and the holder of a special category (Subclass 444) visa.

 

  • They are not currently receiving government parental leave pay, dad and partner pay.
  • They are not currently totally incapacitated for work and receiving payments under an Australian workers’ compensation law in respect of your total incapacity to work.
  • They are not an employee (other than a casual employee) of another entity.
  • They have given you a JobKeeper nomination notice, and not given another entity a JobKeeper nomination notice.

After you enrol, there will be other notification conditions which you will need to meet. More information will be available soon.

 

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Dynamo

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Yeah I saw that too but then there is this bit:

it had an ABN on 12 March 2020, and
it had lodged, on or before 12 March 2020, at least one of
- a 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it carrying on a business, or

- an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that it made a taxable, GST-free or input-taxed sale

Neither of those are suitable for new businesses so it's confusing. Although I did see some info about new businesses under the alternative test section so fingers crossed. There are so many in our situation.
Surely if we can prove drop in revenue /income we should be okay.
I'm in the events / wedding industry so it's been zilch !
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Best answer

Master

Replies 2

ATO have said they will determine an alternative test for fall in turnover where there is not an appropriate relevant comparison period. They have specifically called out new businesses - we will be making a legislative instrument to deal with new businesses in operation less than a year, and some other circumstances such as businesses who had a temporary fall in turnover in 2019 due to drought. This will be available soon.

 
 
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Initiate

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is the cut off date 30th of april to apply if so, how quickly will that info be released

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Community Support

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Hi @Irfaan

 

Thanks for reaching out to us.

 

We are gradually updating the JobKeeper Payment section of our website with more information, but we acknowledge that the lodgment requirements for businesses that started during the 2019-20 financial year haven't been detailed yet. We expect to have some information on that soon so keep an eye on our forum as well as the JobKeeper guides on our website for updates.

 

One of the reasons why we have extended the JobKeeper Payment enrolment to 31 May is because of this issue so you now have plenty of time to enrol.

 

In the meantime, we recommend that you have a look at the alternative test page for guidance on how to determine a fall in turnover.

 

Good luck with it all.

 

Thanks, ChrisR