The ATO have advised that JobKeeper payments are taxable and need to be included in tax returns.
If you’re a sole trader who has received JobKeeper payments, you need to include the payments as business income in your individual tax return.
If your business is a partnership, trust or company, and your business received JobKeeper payments, you don’t need to include it as assessable income in your individual tax return, but you still need to report JobKeeper payments as either:
- business income in your partnership or trust tax return
- income in your company tax return.
Your accounting method will also affect the total JobKeeper payments that need to be included in your tax return.
Your employees won’t need to do anything different as the payments will be included as salary and wages, or an allowance, in the regular income statement or payment summary you provide as an employer.
Find out more information here.