COVID-19 Series – JobKeeper Payments for Sole Traders & the Self Employed

The Federal Government’s JobKeeper Scheme has been made available to eligible Sole Traders, the self-employed and their employees. This article briefly discusses eligibility and how to access the scheme.

Am I eligible for the scheme?

As a sole trader, you will be eligible for the JobKeeper payments if, when you apply for the scheme:

  • Your business GST turnover has fallen (or will fall) by 30% or more (for businesses with aggregated turnover of less than $1 billion).

  • You held an ABN on or before 12 March 2020 and:

  • had an amount included in your assessable income for the 2018-19 year and it was included in your income tax return lodged on or before 12 March 2020 (or such later time as allowed by the Tax Commissioner); OR

  • made a taxable, GST-free or input-taxed sale, shown on an activity statement of GST return for any period after 1 July 2018 and before 12 March 2020 (or such later time as allowed by the Tax Commissioner).

  • You were actively involved in the business;

  • You are not a permanent employee of any other employer;

  • You are not entitled to another JobKeeper payment (either as a nominated business participant of another business or as an eligible employee);

  • As at 1 March 2020 you:

  • Were at least 16 years of age;

  • Were a resident in Australia for tax purposes;

  • Were an Australian citizen, holder of a permanent visa or a Special Category (Subclass 444) Visa Holder.

It is important that you register by no later than 30 April in order to be eligible to receive payments in May for the April period.

What payment will I receive?

If your business has employees, you are also entitled to receive a JobKeeper Payment per eligible employee with a further additional one payment for the business. Monies will be paid monthly in arrears from May. Where a business has no employees, it will be eligible to receive one JobKeeper Payment.

In practice, the JobKeeper payment for the business (as opposed to the business’ employees) will be paid to a nominated individual, who can bw ine nominated owner of the business where the business operates through a sole trader structure and for other structures as follows:

  • One partner where the business operates through a partnership;

  • One director where the business operates through a company;

  • One shareholder where the business has shareholders who provide labour and receive dividends in lieu of wages;

  • One individual beneficiary (not a corporate beneficiary) where the business operates through a trust.

The nominated person must, as at 1 March 2020, have been at least 16 years of age and an Australian citizen (or the holder of a permanent visa, or a Special Category (Subclass 444) visa holder) and a resident for Australian tax purposes.

Terri Bell & Co can provide assistance to sole traders and answer any questions you may have regarding how the new provisions may assist your business during the Covid-19 pandemic. If you have any questions, please contact Terri Bell or Ellie Wolfenden on info@tlblaw.com.au or 9191 9856.

IMPORTANT NOTICE - The information contained in this article is not intended to be comprehensive. It is general in nature and is not intended to be used as a substitute for legal, financial or other professional advice. You must seek specific professional advice tailored to your personal circumstances before taking any action based on this article.

Liability limited by a scheme approved under Professional Standards Legislation. Solicitor directors and legal practitioners employed by Terri Bell & Co Pty Limited are members of the scheme.

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Email: info@tlblaw.com.au
Phone: +61 2 9191 9856
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Liability limited by a scheme approved under Professional Standards Legislation. Solicitor directors and legal practitioners employed by Terri Bell & Co Pty Limited are members of the scheme.

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