[vc_row][vc_column][vc_column_text]The ATO has released two new alternative decline in turnover tests for the purpose of determining JobKeeper eligibility for certain entities.
Entities can use these new decline in turnover tests for JobKeeper fortnights commencing on or after 28 September 2020.
Eligibility
- The entity must have temporarily ceased trading for a period of at least one week for all or some of the relevant comparison period
- The entity must have resumed trading before 28 September 2020
- The entity’s trading must have ceased due to events or circumstances outside of the ordinary course of the entity’s business
An example is given by the ATO where a business is run from a purpose-built premises and trading ceased to move into a new premises.
Ceasing trading for public holidays or during the off-season of a seasonal business would not be considered an event or circumstance outside the ordinary course of the entity’s business
The Alternative Tests
Entities that fall within the above eligibility criteria can apply the following methods in determining their decline in turnover for a relevant comparison period:
The first alternative test:
The entity can use the current GST turnover for the same period in the year immediately before the business temporarily ceased trading.
The second alternative test:
- a.) If the relevant comparison period is a quarter, the entity can use the total of the entity’s current GST turnover in the 3 months immediately before the month in which the business temporarily ceased trading, or
- b.) If the relevant comparison period is a month, the entity can use the current GST turnover from the month immediately before the month in which the business temporarily ceased trading.
The Legislative Instrument and Explanatory Statement can be found via the attached link:[/vc_column_text][mk_button dimension=”flat” size=”medium” url=”https://www.legislation.gov.au/Details/F2020L01295″ target=”_blank” margin_top=”10″ margin_bottom=”40″ btn_hover_bg=”#c4b097″]Click here[/mk_button][mk_padding_divider size=”5″][vc_column_text]Should these new rules apply to you or you wish to discuss any other aspect of JobKeeper eligibility please contact our team at Trove.[/vc_column_text][mk_padding_divider][/vc_column][/vc_row]
