The Australian Government and the Australian Taxation Office have now published the JobKeeper alternate turnover tests for entities that cannot satisfy the basic decline in turnover test.
The circumstances where a JobKeeper alternative test applies are:
- the entity commenced business after the relevant comparison period (i.e. the business is not 12 months old);
- the entity acquired or disposed of part of the business after the relevant comparison period;
- the entity undertook a restructure after the relevant comparison period (i.e. the business is not the same business in that period as it is now);
- the entity’s turnover substantially increased by:
- 50% or more in the 12 months immediately before the application 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.
- the entity was affected by drought or other declared natural disaster during the relevant comparison period;
- the entity has large irregular variances in their turnover for the quarters ending in the twelve months before the applicable turnover test period, excluding entities that have cyclical or regular seasonal variance in their turnover; or
- 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.
Where an entity falls into more than one of the above categories, it can decide which alternate test to apply.
If an entity has special circumstances that do not fall into one of the JobKeeper alternate tests, they must apply to the ATO Commissioner for special consideration.