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Sole trader with new business deemed ineligible for Jobkeeper

Initiate

Views 1973

Replies 15

I commenced business as a Sole Trader in February 2020, with a registered ABN. 

I satisfied the alternative fall in turnover test, in which the second example describes an eligible business, like me, that began after 1 Feb 2020.

 

I have now been deemed ineligible as I had not been able to provide evidence of supplies or sales made between 1 July 2018 and 31 December 2019, but how could I if my business wasn't active until Feb 2020? 

What I don't understand is that if this example business is eligible then why am I not?

 

I provided evidence of my business activity for Feb and Mar 2020 (invoices), which were sent to the ATO after a review process began of my application. 

 

I have contacted the ATO for further explanation and am awaiting contact from them (not holding my breath).

 

Can anyone shed light on my next steps if I don't hear back from the ATO??

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 1

Hi @katefrancis ,

I understand what you are saying, it is possible in your situation, that you may be eligible under Alternative Test 1 quoted below -

"

Your entity commenced business after the relevant comparison period (the business did not exist in that period) but not on or after 1 March 2020"

Please note that this is a community forum, advice is general in nature. I would suggest contacting the ATO and phoning us to see where you at with the review of your application.

 

Thanks,

 

 

15 REPLIES 15

Most helpful response

Former Community Support

Replies 1

Hi @katefrancis ,

I understand what you are saying, it is possible in your situation, that you may be eligible under Alternative Test 1 quoted below -

"

Your entity commenced business after the relevant comparison period (the business did not exist in that period) but not on or after 1 March 2020"

Please note that this is a community forum, advice is general in nature. I would suggest contacting the ATO and phoning us to see where you at with the review of your application.

 

Thanks,

 

 

Initiate

Replies 0

Yes and this is why I believe I should be eligible.

However I have been told that I am not as I cannot show business activity prior to 31 Dec 2019

How is this supposed to be possible when my business commenced after this??

 

As for contacting the ATO, I was on the phone to them for 45 mins yesterday, and was told that I would be contacted by the review team, and to wait until the end of the week before contacting again.

Enthusiast

Replies 12

Hey,

 

I hate to say it, but you will be determined ineligible.  My situation sounds exactly like yours, I commenced my business in Feb 2020 and in my opinion qualified for the alternative turnover test, but I was still determined ineligible.

I am now in the processing of putting together my objection.

It sounds as if there are heaps of people in the same situation as us.

 

 

Initiate

Replies 11

Hi DeeDee,

Thanks for your comment. I have spoken with ATO and they said that my case is under review (again?) —but I'm not sure that I can trust that this is true. The whole thing has been handled terribly. Were you advised that an objection was your next course of action? How exactly are you going about the objection process?

Enthusiast

Replies 0

I lodged an official complaint on the matter and that fast-tracked the process.  I was assigned someone who reviewed my case and he confirmed I was ineligible.  You get formally notified of the decision in writing, then within the letter they tell you how to lodge an objection.

From what I understand there is a bit of lobbying on this issue. With any luck they will soften this perceived loophole.


@katefrancis wrote:

Hi DeeDee,

Thanks for your comment. I have spoken with ATO and they said that my case is under review (again?) —but I'm not sure that I can trust that this is true. The whole thing has been handled terribly. Were you advised that an objection was your next course of action? How exactly are you going about the objection process?


 

Newbie

Replies 9

Hi katefrancis, 

 

I'm a sole trader in the exact same position. I called and got told my case was escalated, but no one called me back. This happened 3 times. I evenutally submitted an objection form as specified on the generic email, but the ATO have until 28/08/20 to get back to me with on outcome! I also called about what the steps were now that I submitted an objection, and they can't escalated it or anything, you just need to wait.

 

Pretty annoyed no one from the ATO contacted me to supply evidence, as I had emails and remittance advice showing a 50% loss. There wasn't anywhere to submit these documents, or any information on how to provide them. Just that the ATO would contact you if they needed anything. 

 

No idea what happens in between then, as I can't keep submitting at the end of each month due to the error code. Surely they have to back pay, even if I haven't been able to submit the monthly report. 

 

I recieved the first 2 months of jobkeeper before being told ineligible. 

 

Have you heard back? 

Initiate

Replies 8

Yes I did hear back late after submitting a formal objection, (I recieve a phone call) and I was deemed ineligible due to not having any business activity prior to 31 December 2019 (the last tax period ending before 12 March). It was all very confusing and a lot of people have been caught out. I was told I won't need to repay the one $3000 payment I recoeved as it was an honest mistake. Good luck.

Initiate

Replies 7

Unfortunately I have just been through the objection process and today received notification that I was unsuccessful even though like many I have been trading since January . Sadly the alternative tests mean nothing if you started your business after January 1st . It does appear that the legislation is floored and for many sole traders will be disastrous .The government rushed it through and unfortunately thousands of small businesses will crumble !

Newbie

Replies 6

Hey guys do you have any links showing the laws or legislation in regards to needing business activity prior to January 1? Thanks