The initial announcement regarding the $1,500 fortnightly subsidy failed to include about half of the business population. What I mean by that is companies, trusts and partnerships that don’t pay any wages. Many business owners use these structures and don’t bother to pay themselves a wage because they draw profits out of the business via dividends and distributions. The ATO has now given some thought to these structures and rightly included them. The catch is that you can only get the subsidy for 1 person. The ATO advises the following:
Companies An eligible business that pays shareholders that provide labour in the form of dividends will only be able to nominate one shareholder to receive the Jobkeeper Payment.
Trusts Where a beneficiary of a trust only receives distributions, rather than being paid salary and wages for work done, one individual beneficiary can be nominated to receive the Jobkeeper Payment.
Partnerships Only one partner can be nominated to receive a Jobkeeper Payment.
This is great news! How do you apply? The ATO advises that they will administer the program with an online application process, we are waiting on the ATO to release this application. You may be asked to provide the Tax File Number for the nominated individual and a declaration of business activity.
Charities & Not-for-Profits
2 quick important points for these organisations:
If your organization is registered with ACNC, your turnover only needs to reduce by 15% (not 30%) to be eligible for the Jobkeeper Payment.
Some organisations have questioned what the definition of ‘turnover’ is. Does this include donations and bereavements? The ATO has advised that turnover will be defined according to the current calculation for GST purposes and is reported on Business Activity Statements.