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Sole trader with no 18/19 return

Newbie

Views 487

Replies 4

Hi,

 

I am a sole trader who commenced trading in January 2020. 

 

Due to a small turnover i didn't register for GST. I understand that because I cannot provide 18/19 turnover details, and using the alternative test - because I am not registered for GST, I am not entitled to the jobseeker payment.

 

Is this correct? It seems manifestly unjust, and seems to fly in the face of providing assistance to businesses that are fledgling and very vulnerable. 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 3

Hi @Southseas

 

That is correct you need to have satisfied certain conditions at 12 March 2020, those being:

  • you had an ABN on 12 March 2020, and
  • you had lodged, on or before 12 March 2020, at least one of
    • a 2018–19 income tax return showing an amount included in your assessable income for 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 you made a taxable, GST-free or input-taxed sale.

If on or before this date you had not submitted a 2018-2019 tax return or an activity statement or GST return you have not met the eligibility requirements.

 

If you require income support you can visit Services Australia to see if you are eligible for any other form of support.

 

All the best!

4 REPLIES 4

Most helpful response

Former Community Support

Replies 3

Hi @Southseas

 

That is correct you need to have satisfied certain conditions at 12 March 2020, those being:

  • you had an ABN on 12 March 2020, and
  • you had lodged, on or before 12 March 2020, at least one of
    • a 2018–19 income tax return showing an amount included in your assessable income for 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 you made a taxable, GST-free or input-taxed sale.

If on or before this date you had not submitted a 2018-2019 tax return or an activity statement or GST return you have not met the eligibility requirements.

 

If you require income support you can visit Services Australia to see if you are eligible for any other form of support.

 

All the best!

Newbie

Replies 0

Thanks for that.

 

Can i just say that this seems like a massive oversight. Thos that do their business tax as part of their yearly return and not BAS have been left out in the cold. Do you know who might be best to lodge a complaint to? My MP maybe? Thanks. 

Former Community Support

Replies 1

Hi @Southseas

 

Those who do their business tax as part of their yearly return have not been excluded as the eligibility criteria provides two options. The first that you have lodged a 2018-2019 tax return and the second that you have completed activity statement or GST return. To be eligible you are only required to have done one or the other. Yes you can lodge a complaint with your MP if you are unhappy with the legislation in place.

 

All the best!

Newbie

Replies 0


@YianaATO wrote:

Hi @Southseas

 

Those who do their business tax as part of their yearly return have not been excluded as the eligibility criteria provides two options. The first that you have lodged a 2018-2019 tax return and the second that you have completed activity statement or GST return. To be eligible you are only required to have done one or the other. Yes you can lodge a complaint with your MP if you are unhappy with the legislation in place.

 

All the best!


Well this flies in the face of what we have just now been told by an agent on the phone, that if we didn't make a sale in the last 6 months of 2019 (we began trading Jan 2020), we are not eligible. How can it be that two ATO representatives can be so far apart on their information. If what the agent on the phone has said is correct then there is a huge gap that has been left open for those in fledgling businesses.