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Job Keeper Extension Alternate Tests

The rules for the Job Keeper extension alternative turnover tests have now been finalised.


This is relevant if you have not had an actual 30% decline in turnover for the September quarter just ended compared to last financial years September quarter.

The rules state that an entity can use one of the alternative decline tests if:

  1. the entity’s business had temporarily ceased trading due to an event or circumstance outside the ordinary course of the entity’s business;

  2. trading temporarily ceased for a week or more;

  3. some or all of the relevant comparison period occurred during the time in which the entity’s business had temporarily ceased trading; and

  4. the entity’s business resumed trading before 28 September 2020.

Here’s the fine print:

(1) An entity may apply either of the alternative tests under this section if:

(a) the entity’s business had temporarily ceased trading due to an event or circumstance outside the ordinary course of the entity’s business;

(b) trading temporarily ceased for a week or more;

(c) some or all of the relevant comparison period occurred during the time in which the entity’s business had temporarily ceased trading; and

(d) the entity’s business resumed trading before 28 September 2020.

(2) The first alternative test is: the entity uses the current GST turnover for the same period in the year immediately before the business temporarily ceased trading instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8, section 8A and section 8B of the Rules.

(3) The second alternative test is:

(a) if the relevant comparison period is a quarter, then the entity uses the total of the entity’s current GST turnover in the 3 months immediately before the month in which the business temporarily ceased trading instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules, or

(b) if the relevant comparison period is a calendar month, the entity uses the current GST turnover from the month immediately before the month in which the business temporarily ceased trading instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: Paragraph (b) is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).


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