ATO has released its Job Keeper compliance approach

As mentioned in our previous blogs Australia will be in significant debt after this crisis, logically the ATO will be deployed to lead the repayment this debt via audit activity to ensure compliance with the stimulus measures, tax and other laws.

The ATO has now released examples of Job Keeper schemes where it will devote its compliance resources to uncover unlawful arrangements e.g. Practical Compliance Guideline 2020/4,


This is a simple and good read if you want to understand the types of scenarios they anticipate as being an issue.

These include schemes that have been entered into to enable an entity to gain access to the Job Keeper payment, or an increased amount of the payment.


  • The ATO will seek to determine that an entity was never entitled to a payment and to recover the amount if they are satisfied that the entity had carried out a contrived scheme for the sole and dominant purpose of obtaining the payment.
  • The starting point is where they believe an entity is not significantly affected by external environmental factors beyond its control and yet accesses the Job Keeper payment. They are looking at the industry.
  • They are looking at the substance of the outcome achieved, more than the type of arrangement entered into.
  • The ATO will be able to recover any overpayments and will have the power to impose significant penalties and interest.
  • To better explain its compliance approach, the ATO has listed examples of scenarios that would attract its attention, including where a company chooses to defer the making of supplies, or bringing forward the making of supplies, to obtain the Job Keeper payment. You can view the full list of examples in PCG 2020/4 here.


General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.