JobKeeper and cashflow eligibility anomalies to be addressed

WHILE THE Australian Taxation Office (ATO) has done a fantastic job in its administration of the Federal Government’s stimulus packages, a small number of entities may have wrongfully missed out. 

The report by the Inspector-General of Taxation and Taxation Ombudsman (IGTO) recognised the good work of the ATO in this area but indicates some taxpayers should have been allowed to demonstrate their trading circumstances other than by lodging a BAS before March 12, 2020.

“The ATO is to be commended for its administration of the JobKeeper scheme,” Institute of Public Accountants (IPA) chief executive officer, Andrew Conway said.

“However, a small number of entities may have been denied access to JobKeeper and the cash flow boost. According to the IGTO report, certain financial supplies can satisfy the requirement to evidence business activity which is not limited to notifying the making of a supply via lodgement of a business activity statement (BAS).

“In fact, if a new business opened a business account then this would be sufficient to indicate their business activity intent.

“Accountants, as trusted advisers, should review their small business clients to ensure those that may have been eligible but denied access, are now brought to the attention of the ATO.

“It is unfortunate if some small businesses closed where they could have rightfully accessed the cash flow boost,” Mr Conway said.

www.publicaccountants.org.au

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies. With the acquisition of the Institute of Financial Accountants in the UK, the IPA Group was formed, with more than 40,000 members and students in over 80 countries. The IPA Group is the largest SME focused accountancy organisation in the world. 

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