In this blog Stellar Accounts cover what business owners need to know about the Jobkeeper Payment scheme.
If you’re a sole trader, part of a trust, company or partnership you might be entitled to the payment.
There is a limit of one fortnightly $1,500 JobKeeper payment for one eligible business participant. However, for an entity with eligible employees, you might also be allowed to claim additional payments of $1,500.
Are you eligible as a business owner for the Jobkeeper Payment Scheme?
Your entity needs to have an eligible business participant and be eligible itself.
To be an eligible entity:
- Your entity must have carried on a business in Australia on March 1 2020
- It met criteria as at March 12 including that it had an ABN on that date and had lodged at least one of the following
- 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
- 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
- It must satisfy the drop in turnover for the relevant period
To be an eligible business participant:
- They are not employed by your entity
- They are actively engaged in the business your entity carried on at March 1 and fortnight/s you are claiming
- At March 1 and the fortnight/s you are claiming they are:
- An adult beneficiary of the trust
- A shareholder or director in the company
- A partner in the partnership
- A sole trader
- They are both at least 16-years-old and an Australian resident, or resident for income tax purposes and holder of special category visa Subclass 444 at March 1
- They’re not employed by another entity
- They’re not receiving parental leave pay, dad and partner pay from the government
- They’re not incapacitated for work and receiving money under Australian worker’s compensation due to incapacity to work
- They have handed a nomination notice for the scheme to you and not another entity
FAQs | Jobkeeper Payment Scheme for Business Owners
Can an entity nominate more than one eligible business participant?
No. Only one business participant can be nominated therefore a business entity must pick which person to nominate. An entity is only entitled to one Jobkeeper payment a fortnight.
If a sole trader has more than one business, can they receive more than one payment under the scheme?
No. The payment can only be received once.
Are two different businesses able to claim payments for the same person?
No. Only one business can claim payments for an individual.
If a sole trader is employed by another business can they receive the payments?
The individual can tell their employer to claim payments on their behalf or they can claim as a sole trader – but they can’t do both.
If I’m an eligible business participant do I receive the payment?
No – it is received by the entity. There is one exception to this, where a sole trader is both the entity and the participant – so they receive the payment themselves.
For specific examples head to the ATO website here.
Enrolling for the Jobkeeper Payment
Enrolment takes place after you have determined your non-employee is an eligible business participant and your entity is also eligible.
An online enrolment form will be available on the ATO website from April 20 and entities must be enrolled by the end of April.
Here’s how Stellar Accounts can help you through the process:
- Determine eligibility – $99
- Make initial application – $155
- Manage process and lodge monthly financial information to ATO – $99/mth
*These fees don’t include any bookkeeping or preparation of financial information and can be quoted separately.
What business owners need to know about the Jobkeeper Payment Scheme
Has your business has been impacted by Coronavirus? Find out if you can take advantage of the Jobkeeper scheme today by giving the team at Stellar Accounts a call on 0428 887 104.
Stellar Accounts is Brisbane’s leading small and new business accounting firm. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.
With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.
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