Australian business owners on JobKeeper have been reminded by the Australian Taxation Office that certain business participants are eligible to receive the wage subsidy.
“If you’ve enrolled for the JobKeeper Payment, don’t forget to check if you can nominate an eligible business participant,” the office said on its website.
An ‘eligible business participant’ is someone who isn’t an employee of the business, but is actively involved in its operation.
“For example, they might manage the sale of your business’ goods, or exercise control over the business’ strategy,” the ATO said.
They have to have been actively engaged in the business as of 1 March 2020, and on the fortnight that JobKeeper is claimed – so if your business participant is on leave, you can’t claim JobKeeper during that period.
Only one business participant is eligible per business, the ATO advised, so if that person leaves your business, you aren’t allowed to nominate someone else to replace them for the subsidy.
“Even if your business has several people who meet the eligibility criteria (such as all partners in a partnership, or a board of directors), you can only nominate one individual as your eligible business participant,” the ATO said.
A business participant is eligible for JobKeeper if they are:
- A sole trader who isn’t bankrupt;
- A director or shareholder in the company;
- A partner of a partnership; or
- An adult beneficiary of a trust (who isn’t the trustee).
However, business participants of child care providers are excluded from claiming JobKeeper as of 20 July 2020.
You also can’t claim JobKeeper twice as an employee and again as a business participant – you have to either be one or the other.