# ATO: Did you receive JobKeeper this financial year?



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office’s small business newsroom:






Page not found | Australian Taxation Office







www.ato.gov.au





*Did you receive JobKeeper this financial year?*

7 June 2021

JobKeeper payments are taxable, so you need to include them in your tax return.

If you’re a sole trader, partnership, company or trust that's received JobKeeper payments, we’ll contact you or your registered tax agent by early July to let you know:

. the total amount of JobKeeper payments your entity received since 1 July 2020, or where you can find out

. where to report JobKeeper payments in your tax return.

From early July, sole traders who've received JobKeeper payments for themselves and any eligible employees will also be able to find the total amount of JobKeeper payments they’ve received through Online services for business and myTax.

Their registered tax agent will also get this information.

The amount will be provided as ‘information only’ and will not be mapped to a label.

Here are some important points about including JobKeeper payments in your return:

You don’t need to include any JobKeeper payments that you’ve already repaid (or are repaying to us) in your return.

You should review and cross-check the payment amounts against your own records to make sure they're accurate.

Remember, registered tax agents can help you with your tax.

Find out about:

Supporting your small business – for information on where to report JobKeeper payments:








Supporting your small business


Tax time essentials, learning resources, tools and services to support small business.




www.ato.gov.au


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## Jack Malarkey (Jan 11, 2016)

Australian Taxation Office:









Supporting your small business


Tax time essentials, learning resources, tools and services to support small business.




www.ato.gov.au





*Reporting JobKeeper payments*

JobKeeper payments are taxable and need to be included in tax returns.

If you’re a sole trader who has received JobKeeper payments, you need to include the payments as business income at the label 'Assessable government industry payments' in your individual tax return.

If your business is a partnership, trust or company, and your business received JobKeeper payments, you don’t need to include it as assessable income in your individual tax return, but you still need to report JobKeeper payments as either:


business income at the label 'Assessable government industry payments' in your partnership or trust tax return
income at the label 'Assessable government industry payments' in your company tax return.
Your accounting method will also affect the total JobKeeper payments that need to be included in your tax return. If your business operates on:


an accruals accounting basis 
JobKeeper payments relating to valid business monthly declarations made on or before 30 June 2020 are included in your 2019–20 tax return
JobKeeper payments relating to valid business monthly declarations made on or after 1 July 2020 are included in your 2020–21 tax return



a cash accounting basis 
JobKeeper payments you received on or before 30 June 2020 are included in your 2019–20 tax return
JobKeeper payments received on or after 1 July 2020 are included in your 2020–21 tax return.


If you have received a JobKeeper overpayment, you will need to repay the amount.

Depending on the circumstances, we may decide it does not have to be repaid (particularly if there was an honest mistake) and will let you know.

If you:


have repaid, or are repaying JobKeeper overpayments, you do not need to include the amount as assessable income in your tax return. If you have already included the overpaid amount in your business income tax return in an earlier year, you will need to amend that earlier return to reduce your assessable income by the amount you have repaid
don’t need to repay JobKeeper overpayments because we have waived it, you will still need to include the overpaid amounts as assessable income in your business tax return.


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## Jack Malarkey (Jan 11, 2016)

Message received from the Australian Taxation Office via myGov:

Australian Taxation Office

Reminder: Include JobKeeper payments in your 2020-21 income tax return

18:38 AEST 30/06/2021

Hi JACK,

Our records show that since 1 July 2020, you received a gross amount of $27,900.00 in JobKeeper payments.

Don't forget that your JobKeeper payments are part of your assessable income and need to be included in your 2020-21 tax return.

If you're a sole trader, you need to include JobKeeper payments as business income in your individual tax return.

If your business is a partnership or trust, you need to report JobKeeper payments as business income in your partnership or trust tax return.

If your business is a company, you need to report JobKeeper payments as business income in your company tax return.

You don't need to include any JobKeeper payments you've repaid, or are repaying, in your 2020-21 tax return.

The amount you include in your 2020-21 income tax return will also depend on whether your business operates on a cash or accruals accounting basis.

If you need help, a registered tax professional can assist you or you can find more information by visiting the link below.
•	
•	2020-21 JobKeeper payment amounts
•	How to include JobKeeper payments in your income tax return: Supporting your small business


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## Sandhills (Feb 9, 2018)

This is gonna bite Jack, I suspect many will get a horrible surprise

If you get caught the ATO should be amenable to a long payment arrangement

Another trap may be if this is counted towards paygi ..if it is get advice on varying any assessment..not all income types are ..Jack will let us know 🤣👍


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## Jack Malarkey (Jan 11, 2016)

Sandhills said:


> This is gonna bite Jack, I suspect many will get a horrible surprise
> 
> If you get caught the ATO should be amenable to a long payment arrangement
> 
> Another trap may be if this is counted towards paygi ..if it is get advice on varying any assessment..not all income types are ..Jack will let us know 🤣👍


Yes, jobkeeper payments would count for quarterly PAYG income tax purposes as they are a form of business income. This could result in a big increase in the quarterly instalments and bring many drivers into that system for the first time.

All instalments are credited against end-of-year liabilities.

It is possible to lower the quarterly PAYG liabilities by estimating a lower figure for the current year’s overall business income. Penalties may apply in some cases for some underestimates.

Alternatively, you can base your quarterly instalments on the current quarter’s turnover in the business activity statement. There are no risks of penalties if you do it this way. I propose to do that myself.

See:






Page not found | Australian Taxation Office







www.ato.gov.au


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## Sandhills (Feb 9, 2018)

Good points , for those unfamiliar with paygi it can bite badly and seems like double tax bit is just a credit towards next year's tax.

The bite comes because it is based on the year just passed so if because of jobkeeper you get higher paygi relevant income ( not all income is ) then first you get your annual tax bill then not too long after you may get a paygi assessment

Now the important thing to understand strategically is it can be varied by you even downwards to zero 

If you did that and then in your next return you had to pay a lot of income tax, meaning U dudded the paygi system , you will have to pay interest and potentially can get in trouble 

Now alternatively if you estimate in good faith the next year will go back to normal and U figure out your income tax is lower then U can vary the paygi installments down to cover that estimate


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## Sandhills (Feb 9, 2018)

Other interesting situations can arise for example 

You give up rideshare and go back to wages for the 2022 tax year ...that would mean (assuming no other paygi income like rents , other business income , royalties etc ) you don't have paygi type income you only have PAYGW income ( witholding..as tax withheld by your employer) then U could vary the paygi assessment to nil 

Other strategies involve varying the reporting period to annually ( not always available) 

If anyone has this problem post here and I am sure Jack , others or myself can throw up a few ideas for you to consider and run past your tax agent


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