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JobKeeper for sole traders - how to make a business monthly declaration

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Mark ONeill
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Last updated: 6 May 2020

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Ongoing reporting for JobKeeper

For each month that you qualify for the JobKeeper initiative, you will need to declare what your current GST turnover was, as well as what your projected GST turnover is for the following month. Actual turnover will need to be reported to the ATO, through your myGov account, by the 7th of each month.

For example, if you qualify for the JobKeeper initiative in April 2020, the business monthly declaration will ask you to declare your GST turnover for April 2020, and the projected GST turnover for May, 2020 - see example below. Read on to find out how you can work out these amounts.

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What is GST turnover?

“GST turnover” simply means your total sales (income) exclusive of GST.

How to calculate current GST turnover

This calculation is the same whether you are registered for GST or not. Some examples of this have been outline below:

  • If you are a rideshare driver: you should take your total income for the month according to your monthly tax summaries from your rideshare platforms (inclusive of fees, tips, and incentives), and then divide this result by 1.1 to exclude GST.
  • If you are a food delivery driver and not registered for GST: you should sum the total income according to your monthly tax summaries. There is no need to divide by 1.1.
  • If you operate any other business: work out your total gross income from the relevant month, and then divide the result by 1.1 if that income includes GST. 

You can refer to the range of income items that are excluded from the GST turnover calculation here.

How to forecast projected GST turnover 

There are a number of factors that can influence your own projections for GST turnover in a future month, and this can include factors outside of COVID-19. As a result, there is no strict calculation to abide by when you are working out this estimate. However, we recommend that any ‘assumptions’ or reasons you considered in calculating your Projected GST turnover are documented for support and future reference.

  • An example of a projected GST turnover:
    • Jamie is a sole trader who works as a rideshare driver for both Uber and Didi. This business activity has been impacted by COVID-19 due to a reduction in demand of around 60% compared to this time last year. As a result, Jaimie forecasts that her GST turnover for May will be 60% less than what it was in May last year.

    • Brad is a sole trading photographer whose business has also been impacted by COVID-19. Usually business is quite consistent across the entire year, however, in the last couple of months it has dried up substantially with a demand reduction in Apr 2020 of 90% compared to Jan 2020. He thinks his GST turnover for May will be about the same as it was for April 2020, so he inputs the April 2020 GST Turnover as his projection for May.   

You can refer to the range of factors that may and may not be excluded from this projected GST turnover calculation here.

Need more information?

We’re endeavouring to communicate more about this initiative as it is made available by the government. In the meantime, you can find further information via:

 

This document merely provides a broad outline of the subject and is necessarily general in nature. If you require specific advice, which is tailored to your specific circumstances, please do not hesitate to contact us (fees would apply).

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