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Re: Sole trader - Jobkeeper eligibility

Enthusiast

Views 1429

Replies 12

Hello, I am a sole trader and only started trading since July 2019. My business has been ordered to shut down so at the moment i have no income. Am i eligible for jobkeeper if i am not registered for GST (because my turnover is less than $75000) and therefore, i haven't submitted any BAS to the ATO from July 2019 until 12 March 2020? I think it is really unfair if i am not eligible just because i am not registered for GST. Thank you.

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Most helpful response

ATO Certified Response

Community Support

Replies 5

Hi @Thai,

There is a lot of information available at the moment and it can be a little confusing.

You can register for JobKeeper as a sole trader, and you do not need to be registered for GST.

If you do meet the eligibility guidelines there is a JobKeeper guide with steps by step instructions to assist you to register and any obligations.

@mac_bridie I hope this information assist you too and thanks @RobertW for helping out in our Community, really appreciated.

I hope this helps you, SueO

12 REPLIES 12

Superuser

Replies 0

I'm in the same boat. Started in Aug 2019. Not registered for BAS.
Haven't submitted anything to ATO as I'm a new business and don't need to until July.
Also don't have anything in my 2018-19 return about starting a biz because I wasn't in business.
It doesn't make sense. So confusing !

Enthusiast

Replies 7

Hi @Thai 

Check this page under Eligible business participant heading.

 

Hopefully this helps...

Enthusiast

Replies 6

Thank you very much Robert....

One of the conditions to apply being as follow;

"it satisfied certain conditions as at 12 March 2020, being  

  • it had lodged, on or before 12 March 2020, at least one of  
    • 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"

Since i haven't registered for GST, how could i lodge an Activity Statement for the period 1/7/18 to 12/03/20? I hope that the ATO will clarify this as soon as possible. It is really unfair if someone whose usual wages is only a couple of hundred dollars per fortnight now receives $1500 per fortnight whereas people like me are totally being left out even though we also pay tax too.

Most helpful response

ATO Certified Response

Community Support

Replies 5

Hi @Thai,

There is a lot of information available at the moment and it can be a little confusing.

You can register for JobKeeper as a sole trader, and you do not need to be registered for GST.

If you do meet the eligibility guidelines there is a JobKeeper guide with steps by step instructions to assist you to register and any obligations.

@mac_bridie I hope this information assist you too and thanks @RobertW for helping out in our Community, really appreciated.

I hope this helps you, SueO

Enthusiast

Replies 2

Thank you so much Sue.... 

As i only started my business as a sole trader in July 2019 and have not registered for GST, i have no busines assessable income to declare in the 2019 financial year income tax return. Therefore, i have to rely on the second criteria which states that i have to have the following;

"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"

Could you please kindly clarify on how i can satisfy this criteria if i have not registered for GST? I have bank statements and business records to prove that i had been operating since July 2019 until my business was ordered to shut down.

Thank you so much!

 

 

 

Superuser

Replies 1

This is the golden question ! I would love to know the answer too @Thai
I did speak to an ATO consultant this morning that said there will alternative testing for new businesses which is great (testing yet to be decided).
It doesn't answer the question about the 2018-19 return (which no new business would have ) or about the assessment return for GST.
Confusion next level 🤦‍♀️

Enthusiast

Replies 0

Finally got hold with someone from the ATO regarding this question and i was advised in this case, you should still be eligible to apply for the Jobkeeper as long as you can explain and provide supporting information when asked by the ATO subsequently. 

Initiate

Replies 0

Hi @SueATO 

 

Really appreciate the support from the ATO team on these forums.

 

However, the information provided in the Jobkeeper guide doesn't seem to cover this particular case scenario.

 

I am in the same boat as the original poster, as are many others on this forum, whereby we have commenced a new business within this financial year and have not been required to submit a BAS or tax return as yet.

 

It would be great to get some clarity so we can proceed with our Jobkeeper enrolments.

 

Thanks!

Enthusiast

Replies 0

I noted that the ATO website updated the jobkeeper eligibility for sole trader this morning regarding the ATO's discretion as follow;

 

"We have the discretion to give further time, but only in limited circumstances, including if you:

  • did not have a requirement to lodge your 2018-2019 return until after 12 March 2020
  • have deferred your lodgment under an extension of lodgment date we initiated.

Examples include:

  • You are included in a registered agent’s lodgement program whereby your lodgement due date is after 12 March 2020.
  • You have an automatic ATO lodgement deferral in place as you were affected by the Australian bushfires in late 2019, and you are not registered or required to be registered for GST, so will not have lodged a BAS before 12 March 2020."

I am quite confused as my taxable income for 2019 financial year was below the tax free threshold therefore i thought it was not necessary for me to lodge the 2019 tax return. I don't have an agent to lodge for me so i am not entitled to lodgement extension. Am i still eligible for the ATO's discretion if i only started trading as a sole trader since July 2019 and have not registered for GST? Assume if i am eligible, how can i apply for the ATO's discretion? I wonder whether further guidance will be released any time soon. Thank you so much!