JobKeeper - 'Call to Action' & Eligible Sole Traders or Business Owners / Directors / Beneficiaries
This Weeks CALL TO ACTION
Have you taken the necessary steps to receive the JobKeeper COVID-19 Government Stimulus assistance? Here is your To Do List for this week:
1. Check your revenue has OR you 'reasonably expect it to' fall by 30%. That fall can be;
i. for the March quarter just past compared to March quarter last year OR
ii. on a prospective basis for the month of April compared to April last year OR
iii. on a prospective basis for the June quarter compared to June last year.
Note: there are examples of an Alternative Revenue test option available in the Explanatory Memorandum to the legislation. Please review examples 3 and 4 here if you do not believe the above will enable you to meet the 30% fall in turnover requirement.
2. Confirm you are an Eligible Employer (refer to our Client Bulletin Dated 15 April) OR Eligible Sole Trader OR Director / Beneficiary / Shareholder of an Eligible Business (see following).
3. Register for the JobKeeper scheme by 26 April either;
i. via the Business Portal OR;
ii. request C&J to assist with the process via our Tax Agent Portal
4. Request your employees to complete a JobKeeper Employee Nomination Notice.
Remember the 'Credit Boost Stimulus Payment' of $20,000 to $100,000 to the end of October will flow automatically to your ATO BAS account upon submission of your March BAS and then following, your April IAS, May IAS and June BAS. You do not need to do anything to generate this credit boost.
Eligbile Sole Traders or Business Owners / Directors / Beneficiaries
Sole traders and some other business participants (such as partners, beneficiaries of business trusts or company directors and shareholders) may be entitled to the JobKeeper Payment scheme under the business participation entitlement (not-for-profit organisations are not included).
Your entity (sole trader / partnership / trust/ company) may be eligible for the JobKeeper Payment scheme if you:
- have a non-employee individual who is actively engaged in the operation of the business - we refer to this individual as the 'Eligible Business Participant'
- meet the other relevant eligibility requirements
A limit applies of one $1,500 JobKeeper payment per fortnight for one eligible business participant. If your entity also has employees, you may also be able to claim additional JobKeeper payments of $1,500 per fortnight per eligible employee. You will need to nominate one participant for the entity.
The entity, not the eligible business participant, receives the JobKeeper payment. The exception is a sole trader, who is both the business entity and an eligible business participant and so receives the JobKeeper payment themselves.
As the entity, not the individual, receives the JobKeeper payment you do not need to make a payment of $1,500 gross to yourself to receive the benefit. This is different to the situation for Eligible Employees who must receive a payment of at least $1,500 gross.
Further detail on the rules for sole traders, partners, beneficiaries of business trusts or company directors and shareholders is available at the ATOs JobKeeper Sole Traders and Other Entities Page or please contact your C&J partner to discuss you eligibility.
Enrol and Apply for the JobKeeper Payment
You need to enrol as a Business Participant for the JobKeeper payment by 26 April by;
i. via the Business Portal OR;
ii. request C&J to assist with the process via our Tax Agent Portal
Your entity needs to enrol by the end of April for payments in either the fortnights starting 30 March 2020 or 13 April 2020.
We are still waiting on additional information on notification and reporting requirements from the ATO.
Nominating Business Participant Form
You will need to complete the ATOs nomination form that can be found here: https://www.ato.gov.au/assets/0/104/300/387/d1aab7f2-fbe8-44b8-9ec1-4885ded1088e.pdf
This form confirms that you have agreed to be nominated to receive the JobKeeper payments through an eligible business. Please keep the completed form in your records, it doesn't need to be provided to the ATO unless requested.
Resources
Coronavirus Economic Response Package Explanatory Memorandum
https://www.legislation.gov.au/Details/F2020L00419/Explanatory%20Statement/Text
JobKeeper Payment ATO