Job Keeper Update 22/04/20
One of the key features for eligibility of the Job Keeper initiative requires entities to have lodged on or before 12 March 20 their 2018-2019 tax return or an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 20.
The ATO have now stated that businesses with employees may be covered under their tax agent lodgement deferrals. Businesses may now need to provide additional supporting documents to confirm eligibility or wait until the first return is lodged.
The ATO have given the following example:
Hieu uses a tax agent to prepare his business income tax and annual GST returns. He did not lodge his 2018–19 tax return or annual GST return by 12 March 2020 because his due date for these lodgements is 15 May 2020.
Hieu remains eligible to receive the cash-flow boost as long as he lodges his 2018–19 tax return or 2018–19 annual GST return before his due date.
If Hieu lodges his March 2020 activity statement before either of the 2018–19 returns are lodged, the cash-flow boost will be credited when the first return is lodged.
Alternatively, Hieu can provide us with supporting documents that assist us to determine that he is eligible.
The ATO have yet to give definitive guidance around Sole Traders, partnerships, trust or companies who are looking to qualify under the business participation entitlement.
Remember that ALL eligible employees must be nominated for the scheme, individuals may request not to be included. This may cause a cashflow issue for many businesses, it may not be applicable for all to take advantage of this initiative.