ATO Announcement: June Jobkeeper Payments Assessable in 2021 Income Year
The ATO has confirmed that JobKeeper payments for fortnights ending in June 2020 will be assessable in the following 2020-21 income year.
Businesses operating on an accruals basis
Where a business operates on an accruals basis, JobKeeper payments are derived at the time when the business entity becomes legally entitled to those payments. The ATO has confirmed that when it receives the relevant business monthly declaration, this triggers the business entity’s entitlement to JobKeeper and the payment of that entitlement. For JobKeeper payments for fortnights ending in June 2020, the business monthly declaration will generally be lodged in July 2020 (or a later month). Therefore, JobKeeper payments for this period will be assessable in the 2020-21 income year.
Businesses operating on a cash basis
Where a business operates on a cash accounting basis, JobKeeper payments are derived when the entity receives the payments. JobKeeper payments for fortnights ending in June will be received by the business in July 2020 (or a later month) and, therefore, assessable in the 2020-21 income year. Payments can only be made after the business entity provides a valid completed business monthly declaration to the ATO.
For assistance assessing JobKeeper payments or preparing and lodging your 2020 year-end financials and income tax return, please contact our tax specialists on:
Brisbane – Jamie Towers
Melbourne – Evan Beissel
Sydney – Gaibrielle Cleary
+61 7 3218 3900
+61 3 9252 0800
+61 9922 1166
All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of the Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Mazars and the source of the publication are duly mentioned. In all cases, Mazars’ intellectual property rights are protected and the Mazars Group shall not be liable for any use of this publication by third parties, either with or without Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.