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Sole trader + casual employee JobKeeper extension eligibility

Newbie

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Replies 3

I am a sole trader as well as a casual employee of another business. I have received the original JobKeeper payments through my employer who is no longer eligible to receive support through the JobKeeper extension program. However, my own business has had  more than a 30% decline in turnover, so would I, as an eligible business participant of my own business (which has no employees) now be eligible to receive support from the JobKeeper extension? Since I am no longer receiving JobKeeper payments from my employer, can I now register and receive support as a sole trader for the first extension period? Can I use the July - Sep quarter for my business to qualify for a 30% drop in GST turnover even though I was receiving support from my employee until 27 September? Thank you

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Most helpful response

ATO Community Support

Replies 2

Hi @Kaylene,

 

Your sole trader business may be eligible for JobKeeper for employees, but you will not be eligible as a business participant.

 

This is because the last criteria to be an eligible business participant is you have not previously given another entity, or us, a JobKeeper nomination notice.

 

If your business is eligible and you still wish to claim for the eligible employees (not for an eligible business participant), the normal eligibility criteria and turnover tests still apply. You would still need to use the September quarter 2020 compared to September quarter 2019, unless you meet the eligibility for an alternative test.

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hi @Kaylene,

 

Your sole trader business may be eligible for JobKeeper for employees, but you will not be eligible as a business participant.

 

This is because the last criteria to be an eligible business participant is you have not previously given another entity, or us, a JobKeeper nomination notice.

 

If your business is eligible and you still wish to claim for the eligible employees (not for an eligible business participant), the normal eligibility criteria and turnover tests still apply. You would still need to use the September quarter 2020 compared to September quarter 2019, unless you meet the eligibility for an alternative test.

Newbie

Replies 0

Thanks Blake. Is that criteria able to be reviewed, since we were instructed initially that as a sole trader and a casual employee, we could choose which way we could claim the original JobKeeper (either through our business or our employer but not both)? I chose to allow my employer to claim this because it was easier for me, but now it seems I'm being penalised for this decision because my employer is no longer eligible (making me ineligible) and now I'm not eligible as a business participant. It seems unfair to me because I based my decision on the advice at the time which is now unfavourable. So, is there any potential to review this criteria for people in a similar situation to me? Thank you.

ATO Community Support

Replies 0

Hi @Kaylene,

 

 

The purpose of JobKeeper is to keep jobs during COVID-19 hardship. Your employer is now no longer meeting the criteria that we deem to show that hardship, and therefore no longer needs the support to sustain their employees on the books during a period of low work, since they don't have low work.

 

You are not being penalised by not being able to move the entity you're nominating for JobKeeper through. This criteria of you have not previously given another entity, or us, a JobKeeper nomination notice is the same for everyone, whether an eligible business participant or eligible employee.

 

There is no discretion to review this decision. 

 

If you're experiencing financial difficulties, you may want to speak to Services Australia to see if you or your business are eligible for assistance.