JobKeeper eligibility: Sole traders and other entities
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. However, not-for-profit organisations are not included.
Your entity 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.
Eligible business participant
Your non-employee individual is an eligible business participant of your entity for the fortnight if they meet all of the following:
- They are an individual not employed by your entity.
- They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
- They are one of the following (at 1 March 2020 and for the fortnight you are claiming)
- a sole trader
- a partner in the partnership
- an adult beneficiary of the trust
- a shareholder or director in the company.
- As at 1 March 2020, they are both
- aged at least 16
- an Australian resident (within the meaning of section 7 of the Social Security Act 1991), or a resident for income tax purposes and the holder of a special category (Subclass 444) visa.
- They are not currently receiving government parental leave pay, dad and partner pay.
- They are not currently totally incapacitated for work and receiving payments under an Australian workers’ compensation law in respect of your total incapacity to work.
- They are not an employee (other than a casual employee) of another entity.
- They have given you a JobKeeper nomination notice, and not given another entity a JobKeeper nomination notice.
Your entity is eligible if:
- on 1 March 2020, it carried on a business in Australia
- it satisfies the fall in turnover test for the relevant period
- it satisfied certain conditions as at 12 March 2020, being:
- it had an ABN on 12 March 2020, and
- it had lodged, on or before 12 March 2020, at least one of
- 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, or
- 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 had lodged, on or before 12 March 2020, at least one of
Note: A discretion to give further time after 12 March 2020 may apply in limited circumstances.
An entity is not eligible for the JobKeeper payment for an eligible business participant if:
- the Major Bank Levy was imposed on the entity or a member of its consolidated group for any quarter before 1 March 2020
- the entity is a not-for-profit organisation
- the entity is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997)
- the entity is a local governing body
- the entity is wholly owned by an Australian government agency or local governing body
- the entity is a sovereign entity
- if the entity is a company in liquidation
- if the entity is an individual who has entered bankruptcy.
Enrol and apply for the JobKeeper payment
When you have worked out that your business is an eligible entity and your individual non-employee is an eligible business participant you need to enrol.
Your entity can enrol for the business participation entitlement from 20 April 2020 using an online form, which will be available on ATO website.
Your entity needs to enrol by the end of April for payments in either the fortnights starting 30 March 2020 or 13 April 2020.
Only one claim per individual for JobKeeper payments can be made. An entity cannot claim JobKeeper payments for an individual if there is already a JobKeeper claim being made by another business or employer for that individual.
A sole trader with more than one business can only receive the JobKeeper payment once.
Only one eligible business participant can be nominated. This means that a business entity must choose which eligible business participant to nominate, and the entity is only entitled to one JobKeeper payment per fortnight.
Talk to us as we can assist you – we will provide you with an engagement letter indicating the scope of work required to be undertaken and the commercial aspects of our advice and assistance.