One sole trader, shareholder, trustee or partner deemed eligible for Jobkeeper

If you’ve enrolled for the JobKeeper Payment, don’t forget to check if you can nominate an eligible business participant.

An eligible business participant is an individual who’s not an employee of your business but is actively engaged in its operation. For example, they might manage the sale of your business’ goods, or exercise control over the business’ strategy.

To be eligible for JobKeeper payments, the business participant must be an individual who is:

  • a sole trader (and is not bankrupt)
  • a director of, or shareholder in, a company
  • a partner of a partnership (but not through an interposed entity, for example an individual trustee of a trust that is a partner in a partnership)
  • an adult beneficiary of a trust (who is not the trustee).

The individual must also have been actively engaged in the business at 1 March 2020 and in the fortnight that the JobKeeper payment is claimed. For instance, if your eligible business participant is on leave, you cannot claim JobKeeper payments for JobKeeper fortnights that fall in that time period.

As of 20 July 2020, approved providers of child care services can’t claim JobKeeper payments for business participants.

Unlike employees, the rules registered by the government last month did not change the key date for assessing business participants’ eligibility.

Key points to remember

  • An eligible business participant must be an individual.
  • An individual can only count as either an eligible employee or an eligible business participant, not both.
  • Your business can only have one eligible business participant – even if the individual you have nominated as eligible business participant leaves your business, you can’t nominate someone else to replace them.
  • Even if your business has several people who meet the eligibility criteria (such as all partners in a partnership, or a board of directors), you can only nominate one individual as your eligible business participant.

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