JobKeeper Alternative Turnover Tests
The ATO has now determined alternative tests for various businesses in relation to the fall in turnover where there is not an appropriate relevant comparison period.
If your business satisfies the basic test, you do not need to go to any of the alternative tests as outlined.
The alternative tests can apply in the following circumstances:
1. the entity commenced business after the relevant comparison period (the business did not exist in that period)
2. the entity acquired or disposed of part of the business after the relevant comparison period (the business is not the same business in that period as it is now)
3. the entity undertook a restructure after the relevant comparison period (the business is not the same business in that period as it is now)
4. the entity’s turnover substantially increased by:
- 50% or more in the 12 months immediately before the applicable turnover test period; or
- 25% or more in the 6 months immediately before the applicable turnover test period, or
- 12.5% or more in the 3 months immediately before the applicable turnover test period.
5. the entity was affected by drought or other declared natural disaster during the relevant comparison period
6. the entity has a large irregular variance in their turnover for the quarters ending in the 12 months before the applicable turnover test period, or
7. the entity is a sole trader or small partnership where sickness, injury or leave have impacted an individual’s ability to work which has affected turnover.
The Commissioner cannot determine an alternative decline in turnover test in all circumstances. It is only where there is an event or circumstance that is outside the usual business setting for entities of that class which results in the relevant comparison period in 2019 not being appropriate for measuring decline in turnover.
The Commissioner can also only determine a test for a class of entities and cannot make discretionary decisions for individual entities.
If you fall into more than one of the classes of entities covered by the alternative test, you can choose which alternative decline in turnover test to apply. You only need to satisfy one of the tests (it does not matter if you do not satisfy one of the other tests that applies to you).
We are providing calculation and enrollment into the JobKeeper system as a free complimentary service to our clients in order that those businesses survive these uncertain times.
DOWNLOAD ARTICLE – Jobkeeper Payment Alternate test – Update 4
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P 1300 854 159