The JobKeeper Payment received from ATO will part of assessable income of the sole trader.


According to latest ATO update, sole traders maybe now entitled to JobKeeper Payment scheme if they meet the following criteria:

  • Carried on a business in Australia on 1 March 2020;
  • Experience the fall in turnover requirement
  • Had ABN on 12 March 2020
  • Had lodged either a 2018-19 income tax return, or GST return for any period that started after 1 July 2018 and ended before 12 March 2020. 

There’s no requirement for the sole trader to register for PAYG withholding, start reporting through Single Touch Payroll, or pay salaries, because sole trader won’t be getting a wage from this structure. 

The JobKeeper Payment received from ATO will part of assessable income of the sole trader. 

Enrolment to JobKeeper payment will begin from 20 April via ATO website. Eligible sole traders will need to complete enrolment by the end of April, to receive the JobKeeper payment for fortnight starting 30 March 2020 and 13 April 2020. 


Example

Jameela is a sole trader and operates a cupcake business. She is an Australian resident with an ABN and have been running her business since 2017. Jameela runs her business as a sole trader with no employees. 

Jameela projects a fall in turnover in her cupcake business of approximately 80% in April 2020 compared with April 2019 as a result of the covid19. 

Jameela is qualified for the Jobkeeper scheme. 


Common Questions:

Can a sole trader with more than one business receive multiple JobKeeper payments?

No. You can only receive the JobKeeper Payment once 

Can a sole trader receive JobKeeper payments when they are also an employee of another business?

No. If the sole trader is bother a long term casual employee of another business and also an eligible sole trader, they can choose to either let their employer claim the JobKeeper payments on their behalf, or they can claim as a sole trader, but not both.

Feel free to reach out if you have any questions. 

Reference: https://www.ato.gov.au/General/JobKeeper-Payment/


Target Accounting