6. Practical examples of the JobKeeper Payment Scheme

Below is our understanding of the application of the ATO JobKeeper Payment scheme guidelines to different business structures used by dental and medical practices, on the basis that the eligible employer/business participant has a 30% decrease in their turnover.

Please note, these example are general in nature only and are also based on the information currently available. The answers may change as additional guidance is issued by Treasury and the ATO. If you would like to discuss your specific circumstances, please contact us

1. A sole trader in private practice with no employees
   Dr Smith is self employed with an ABN and should qualify for the JKP. 

2. A sole trader in private practice with employees
   Dr Jones as an employer qualifies for the JKP for their eligible employees.  Dr Jones may also qualify for the JKP as a sole trader, as long as a nomination notice hasn’t been provided to another entity for Dr Jones.

3. A sole trader in private practice and using a service trust with employees and adopting the Comparable Profits Method for determining the service fee contribution.
   The service trust is likely to qualify for the JKP for its employees due to a reduced service fee income from Dr Brown. Dr Brown may also qualify for the JKP as a sole trader, as long as a nomination notice hasn’t been provided to another entity for Dr Brown.

4.  A sole trader in private practice and using a service trust with employees and adopting the Net Expenses Method for determining the service fee contribution.
   The service trust may not qualify for the JKP for its employees as the service fees may not have reduced due to the ongoing service contribution from Dr Miller.  Dr Miller may also qualify for the JKP as a sole trader, as long as a nomination notice hasn’t been provided to another entity for Dr Miller.
   
   Please call your adviser to discuss your options with this business structure.

5. A sole trader with only PSI income and no employees
   Dr Johnson (Contractor) – should qualify for the JKP

6.  A sole trader in private practice and earns VMO income and no employees.
   Dr Williams qualifies for JKP as long as a nomination notice hasn’t been provided to another entity for Dr Williams.

7. A sole trader in private practice with VMO income and employees.
   Dr Wilson as the employer qualifies for the JKP for their eligible employees.  Dr Wilson may also qualify for the JKP as a sole trader as long as a nomination notice hasn’t been provided to another entity for Dr Wilson.

8.  A sole trader in private practice with a fractional staff specialist position – level 1 to 5
   Dr Le does not qualify for the JKP due to the permanent part – time position as sole traders cannot claim the JKP as an eligible business participant if they are an employee (other than a casual employee) of another business.