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 the last few months of the financial year, you should be aware of the effect of this on your income tax return. 

JobKeeper

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. 

JobSeeker

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.

Early withdrawal of superannuation 

Any amount of superannuation accessed via the early withdrawal program is not considered income and therefore does not need to be included in your 2020/2021 income tax return. 

Got a Question?

If you want to speak to someone about your current Airtax income tax return, book in a Tax Assist call or Tax Professional call with a tax specialist.

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).