Question
I have a client who was operating a gym business as a sole trader when COVID-19 hit.
He qualified for JobKeeper as an Eligible Business Participant and we are now looking to see if he will qualify for the Extension to JobKeeper.
As his gym business income fell, he found a new type of business to get involved in.
He is still running the gym, and this is still operating at less than 30% of last year’s turnover. His new sales business is also run through his sole trader ABN.
As he has this additional business income now from the new business, would this mean that even though his gym would still qualify for the JobKeeper extension, that all his income from all sources needs to be added together to determine his eligibility for JobKeeper?
Answer
In general, eligibility for JobKeeper 2 compares turnover for the September 2020 quarter against the turnover of the September 2019 quarter. If the decline in turnover is more than 30%, then eligibility is maintained.
The new sales business will be included in the calculation of turnover because it is on the same ABN.
There are a number of alternative tests for newly formed businesses from 1.10.2020 under JobKeeper 2, you should also explore those to see if your client qualifies.