Frances Sievers

April 17, 2020

Did you know that the JobKeeper payment is not just for employees but also for business owners?  If you haven’t yet looked at your turnover for March 2020 and/or April 2020 so far, you need to.  If you have suffered a 30% reduction when compared to the same time period last year you may be eligible for the JobKeeper payment and this is not just for your employees…….it’s for you too! 

An entity (it does not matter if you employ or not) is entitled to JobKeeper payments for an individual if: 

1. Before the end of a JobKeeper fortnight (the first JobKeeper fortnight started on 30 March 2020 and ended on 11 April 2020) the entity carried on a business and met the decline in turnover test 
2. Had an ABN on 12 March 2020 (can be later but would need to seek approval from the ATO) 
3. The entity’s 2019 tax return showed income in relation to it carrying on a business or the entity recorded sales on a BAS in a tax period between 1 July 2018 and 12 March 2020 and the tax return or activity statement was lodged on or before 12 March 2020 (A later time can be allowed but would need to seek approval from the ATO) 
4. The individual is an eligible business participant for the entity for the fortnight 
5. The entity has notified the Tax Office in the approved form at or before the relevant JobKeeper fortnight that the entity elects to participate 
6. The entity has passed on the required information to the ATO, including details of the individual in the approved form  

So who is an eligible business participant? You will be an eligible business participant of your entity if you: 

• Are not employed by the entity at any time in the fortnight i.e. receiving wages 
• Were not a permanent employee of any other employer and/or not entitlement to another JobKeeper payment through a different entity  
• Are actively engaged in the business carried on by the entity 
• Over the age of 16 and satisfied the residency test 
• Are a sole trader, or 
• The entity is a partnership and you are a partner of the partnership, or 
• The entity is a trust and you are a beneficiary of the trust, or  
• The entity is a company and you are a shareholder or director of the company 

Each entity can only have one eligible business participant for the whole duration of the scheme.  Once the entity nominates an individual this individual cannot be changed.  Choose wisely! 

The entity must notify the individual/eligible business participant in writing within 7 days of giving the ATO their details (except for sole traders). 

Entities caught by Personal Service Rules (PSI) are not carrying on a business and therefore will not pass the required tests and will not be eligible to apply for the JobKeeper payment scheme. 

There are a number of conditions an entity must satisfy before being eligible to receive the JobKeeper payment in addition to the above such as the decline in turnover test.  For more information please refer to https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions_2.pdf or our previous blogs https://www.bloomaccounting.com.au/jobkeeper-payment-helping-you-cover-the-cost-of-employee-wages/ and https://www.bloomaccounting.com.au/take-note-employers-you-must-meet-the-wage-condition-to-be-eligible-for-jobkeeper-stimulus/