JobKeeper – derivation of income

The ATO has updated its guidance on the derivation of JobKeeper payments. It clarifies that for a business which operates on:

• an accruals accounting basis, JobKeeper payments will be derived when the entity provides a valid completed business monthly declaration to the ATO, or
• on a cash accounting basis, the payments for a JobKeeper fortnight are derived when the entity receives those payments.

The normal rules for deductibility apply in respect of the amounts your business pays to its employees where those amounts are subsidised by the JobKeeper payment.