The ATO position is that Taxpayers can satisfy the fall in turnover test in two ways:
- The basic test : Businesses will generally use the basic test, which is based on GST turnover
- The alternative tests : A category of tests accessible where appropriate turnover comparison periods are not available (for example, where your business has been operating for less than a year). Specific alternative tests have not yet been released.
NOTE : You only need to satisfy the fall in turnover test once.
Our office has prepared a simple template to keep track of your reported turnover and determine eligibility for JobKeeper. The ATO position on determining GST turnover makes the same conclusion as contained within our earlier VCA Report https://viccaca.com/revised-jobkeeper-cash-vs-accrual-turnover-test-and-template/. Please note the drop-down option in Cell C9 to ensure you optimise your options if you remit your BAS on a Cash basis. CLICK HERE TO DOWNLOAD OUR TEMPLATE
Please be mindful that while the spreadsheet is indicative, JobKeeper has extensive record-keeping requirements to ensure entities are eligible for the payment.
Unusual Trading Circumstances:
The ATO will be making a legislative instrument to deal with new businesses in operation less than a year, and other circumstances such as businesses who had a temporary fall in turnover in 2019 due to drought. At this stage the only indication is that this will be available soon and will give substance to the alternative tests category.
Date of Issue: 23 April 2020 Author: Noé Vicca
Disclaimer: The contents herein are intended for general information only and should not be construed as legal or accounting advice. Vicca Chartered Accountants Brisbane bears no responsibility for any loss that might occur from reliance on information contained in this publication. Please do not reproduce, transmit or distribute the contents herein in any form without prior permission from Vicca Chartered Accountants, Taxation Accountants Brisbane Australia.