The JobKeeper Scheme also recognises that certain participants in a business (such as a sole trader) have also been affected by the economic downturn caused by the Coronavirus. Accordingly, in order to provide a benefit to such business participants, payments can also be made to an entity in respect of what is referred to as an eligible business participant (i.e., generally controlling individuals who are not employees of their business).

Note that a non-profit body cannot receive a JobKeeper Payment in respect of an eligible business participant.

A ‘business participant’ is an individual who is actively engaged in the business carried on by the entity (i.e., in the operations and activities of the entity) and is either:

• a sole trader;
• an individual partner of a partnership;
• a director or individual shareholder of a company; or
• an adult beneficiary of a

Importantly, however, while a business may have more than one business participant, it can only nominate one of these individuals (who becomes the ‘eligible business participant’) in respect of whom it can receive a JobKeeper Payment. Obviously, no nomination is needed where the individual is a sole trader.

Further, a JobKeeper Payment can only be claimed by an eligible business in respect of the nominated eligible business participant where all of the relevant conditions are satisfied, some of which include:

• The business meets the decline in turnover test (broadly, where its turnover has fallen, or is likely to fall, by at least 30% or 50%, as the case may be).
• The business had an ABN on or before 12 March 2020 (or such later time that the Commissioner allows) and either the business entity:
  • had an amount included in its assessable income for the 2019 income year and it was included in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by the Commissioner); or
  • made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to the Commissioner (i.e., in a BAS that was lodged) on or before 12 March 2020 (or such later time as allowed by the Commissioner).
• The relevant business participant was:
  • actively engaged in the business (i.e., in the operations and activities of the entity) as at 1 March 2020;
  • not entitled to another JobKeeper Payment, either as a nominated eligible business participant of another business (e.g., as a director or beneficiary) or as an eligible employee;
  • not a permanent employee of any other employer;
  • at least 16 years of age as at 1 March 2020; and
  • on 1 March 2020, either:
    • a resident of Australia for social security purposes (e.g., an Australia citizen, a holder of a permanent visa or a holder of a protected special category visa); or
    • a resident of Australia for tax purposes and was a holder of a Subclass 444 (Special Category)

A business seeking a payment for an eligible business participant can register their interest in the JobKeeper Scheme and will need to subsequently make a formal application to the ATO. It is understood that when making a formal application, they will be required to provide their ABN, as well as a single TFN for the eligible recipient of the JobKeeper Payment, and a declaration of business activity.

The ATO currently does not have a formal application for eligible business participants.

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