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Re: New sole trader- job keeper eligibility

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Initiate

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Replies 3

Hi,

Please reply my question.
My husband started working as an ABN sole trader from February 2020 for first time,( before that he was working as an employee for years) from March 2020 his job affected for covid so much that he lost more than 50% of his salary and working hours. He applied for job keeper but at the end of the June he recived email from ATO that he is not eligible for jobkeeper since he doesn’t have activated GSt for 2018-2019 !!
He is one who is affected so much And doesn’t receive any help and it doesn’t make sense to be fair.
Could some one please explain what will happen for new businesses that doesn’t still have any previous record?!

Thanks
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Most helpful response

Master

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Unfortunately, JK does not cover everyone. The government has to have a cutoff somewhere, and your husband does not fit within the rules. For example, employees have to have been employed for 12 months by 12 March. For someone who was employed 1 day less than 12 months on that date, they would not qualify, even though they were "nearly" employed for 12 months.

 

If you disagree with any JobKeeper Payment decision, you are still able to lodge an objection within 60 business days. For more information about how to object to an ATO decision check out the ATO site (but the decision is unlikely to go in his favour). 

 

He may be entitled to jobseeker which is handled by Centerlink https://www.servicesaustralia.gov.au/individuals/topics/online-estimators/28456

3 REPLIES 3
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Most helpful response

Master

Replies 2

Unfortunately, JK does not cover everyone. The government has to have a cutoff somewhere, and your husband does not fit within the rules. For example, employees have to have been employed for 12 months by 12 March. For someone who was employed 1 day less than 12 months on that date, they would not qualify, even though they were "nearly" employed for 12 months.

 

If you disagree with any JobKeeper Payment decision, you are still able to lodge an objection within 60 business days. For more information about how to object to an ATO decision check out the ATO site (but the decision is unlikely to go in his favour). 

 

He may be entitled to jobseeker which is handled by Centerlink https://www.servicesaustralia.gov.au/individuals/topics/online-estimators/28456

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Devotee Registered Tax Practitioner

Replies 1

@Faab @KatieAcacia @KylieATO 

 

Faab,

 

I suggest you read ATO references QC 61925 Special eligibility rules 'new to business' and QC 62755.

 

A client also received the email from the ATO dated end May.

 

Kylie,                 Please comment.

The emails from the ATO advising rejection in late May do appear to contrast the advice by the ATO in QC 61925 dated 20 July 2020.

 

Duncan

 

 

Duncan

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Community Support

Replies 0

Hi @DuncanS

 

As you know you don't need to be registered for GST to claim JobKeeper however you need to show you made a supply for a period that ended before March 12 2020. You can find more information about additional time to notify sales for tax period 1 July 2018 to 12 March 2020 via QC 62916 or exercise of the commissioners discretion

 

If your clients situation doesn't fit any of the categories they can apply for commissioners discretion before enrolling.

 

If you have found a discrepancy on our website please let us know via our feedback form.

 

Thanks, Ari