The ATO confirms that the repayments do not reduce the amount that needs to be included in assessable income from the receipt of the JobKeeper payments originally.
When it comes to determining whether the amounts repaid to the ATO can be claimed as a deduction, the ATO indicates that voluntary repayments of JobKeeper amounts could be deductible in limited circumstances if the payment is clearly appropriate to achieve, or directed at achieving, the entity’s business objectives. Broadly this means that the repayments need to be connected with maintaining goodwill or are publicised in order to advertise the business.
For example, a deduction may be available if the payment is made to:
- Prevent a reduction in business activities, or
- Publicise and promote the business in the short-term.