JobKeeper for Sole Traders Guide

  • April 24th, 2020 at 12:34 pm

Sole traders may be entitled to the JobKeeper Payment scheme under the business participation entitlement.

A limit applies of one $1,500 JobKeeper payment per fortnight for one eligible business participant.

Eligible business participant

An eligible business participant of your entity for the fortnight if they meet all of the following:

  • They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
  • They are one of the following (at 1 March 2020 and for the fortnight you are claiming): o a sole trader
  •  an Australian resident (within the meaning of section 7 of the Social Security Act 1991), or a resident for income tax purposes and the holder of a special category (Subclass 444) visa

After you enrol, there will be other notification conditions which you will need to meet. More information will be available soon.

Eligible business entities

Your entity is eligible if:

  • on 1 March 2020, it carried on a business in Australia
  •  it satisfies the fall in turnover test for the relevant period
  • it satisfied certain conditions as at 12 March 2020, being: or it had an ABN on 12 March 2020, and
  • it had lodged, on or before 12 March 2020, at least one or
  • a 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it 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 that it made a taxable, GST-free or input-taxed sale

Note: A discretion to give further time after 12 March 2020 may apply in limited circumstances. More information will be available soon.

Timing

The subsidy will start on 30 March 2020, with the first payments to be received in the first week of May. Enrolments made after the end of April 2020, will be paid later in May 2020.

How to Apply

When you have worked out that your business is an eligible entity an eligible business participant, you need to enrol and nominate yourself as the eligible business participant during the online enrolment process in the Business Portal or in ATO online services via myGov.

You need to enrol by the end of April for payments in either the fortnights starting 30 March 2020 or 13 April 2020. The enrolment date has now been extended to the end of May 2020.

What to do if you’re receiving the JobSeeker Payment

If you’re receiving a Services Australia income support payment, like the JobSeeker Payment, you must report that income to Services Australia.

You may also need to cancel your JobSeeker Payment. If you do not report the income or cancel your JobSeeker Payment, you may incur a debt that you will be required to pay back.

You can withdraw your claim or cancel your payment using your Centrelink online account through myGov or the Express Plus Centrelink app.

We hope this has simplified the steps required to complete the JobKeeper application. We wish to thank SBAA preferred Tax Agent Luminous Chartered Accountants for providing us with this easy to understand steps.