The ATO has confirmed that Jobkeeper payments are ordinary income and will not count towards the calculation of an entity’s aggregated turnover.
This is important as aggregated turnover is used by entities to access various tax concessions. These include small business income tax concessions, small business CGT concessions, the instant asset write-off, the refundable R&D tax offset, and the base rate entity tax rate.
Including Jobkeeper payments in your 2019/20 Tax Return
JobKeeper payments are assessable income and need to be included in your tax return. If your tax return has already been lodged but did not include these payments, the return will need to be amended.
If you have repaid or are in the process of repaying some or all of your JobKeeper payments to the ATO, you do not need to include these amounts in your tax return.
The normal rules for deductibility apply in respect of the amounts you pay to your employees where those amounts are subsidised by the JobKeeper payment.
If you are a sole trader, the payments need to be included as business income in your individual tax return. If you operate via a partnership or trust, the payments need to be reported as business income on your partnership or trust tax return.
Companies need to report the payments as income on their company tax return.
Please do not hesitate to contact our office on 9387 5637 if you have any questions in regards to Jobkeeper.
