If all you do is share trading as a business and have been effected by this economy, can you get JobKeeper Payments? Let's say someone is trading shares always under their personal name for a number of years. This financial year they've been hit badly and have been making big losses. I'm going with "yes" based on the info here and the quoted text below: JobKeeper Payment for employers and employees | business.gov.au "The JobKeeper Payment is a temporary scheme open to businesses impacted by the coronavirus. The JobKeeper Payment will also be available to the self-employed." "Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments."
The only way to find out for sure is to apply. Businesses without employees Businesses without employees, such as the self-employed, can register their interest in applying for JobKeeper Payment via The Australian Taxation Office (ATO) from 30 March 2020. Businesses without employees will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent business activity. People who are self-employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account. (from business.gov.au)
If you were a good trader, you should be creaming it in this market. Hard to say your business has been negatively impacted by the coronavirus.
Yes, qualified as per those definitions. Accountant has said before that it is share trading as a business and prepares tax returns accordingly. The only thing is don't have a personal ABN number for share trading. This would be an issue. Had an ABN from 10 years ago which has been deactivated. Would it be possible to re-activate the same ABN from a date in the past? If so, is there a timelimit as to how far back you can backdate the ABN? 1 month, 1 year, etc.
Share trading is an activity which common law applies to. Its a business like activity yes. The ordinary income provisions apply to it to class the income as business income. And tradings tock provisions to apply. Its like suggesting an isolated profit making intention (selling subdivided land) is also eligible. The ATO could attack this so easily. A retail business which has no customers or reduced sales due to reduced customer may have less sales an meet a trigger test. A share trader will choose not to create sales for the sake of future sale at a higher future profit. The links to "carry on a business" for example refers to tax ruling 2009/1 that applies to a company not individuals. The greater test is likely based on all the facts and circumstances and the specifics of the tax laws when available. I am going to guess it will contain an avoidance rule to exclude all manner of issues. Otherwise non-commercial loss rules will be at risk of abuse. I would be seeking a ATO binding private ruling. Fraud provisions may apply to being reckless. Update : The Treasury information (pending the Bill being public) indicates a issue of importance just updated in the past 2 hours The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances (e.g. eligibility may be established as soon as a business has ceased or significantly curtailed its operations). I reckon the Commissioner will exclude share traders and the like and apply some "rules" to limit abuse. And share traders who earn income elsewhere may not meet eligibility in any event.
