Suitable for: Sole traders on government support programs who are completing their income tax return
Tax Difficulty: Easy
Airtax Experience: First-time users
Time to Read: 2-3 minutes
Treating government support programs in a sole trader income tax return
As a sole trader, if you've been a recipient of alternative sources of income from the government's COVID-19 support programs in previous financial years, you should be aware of the effect of this on your income tax return.
As a sole trader, any JobKeeper payments you have received will be treated as regular income when you complete your income tax return. This also means these payments are taxed at the same rate as your normal income.
JobKeeper payments will be shown on your income statement at the end of the financial year to enable you to report these payments via your tax return.
If you’ve signed up for JobSeeker, be aware that these payments are taxed and will be included in the 'government payments and allowances' section of your tax return.
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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).