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  • Decline in turnover tests

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    Which test to apply

    The decline in turnover test you need to apply depends on:

    • which JobKeeper period you are applying the test in, and
    • whether you are a new or existing participant.

    JobKeeper original period

    For this period – 30 March 2020 to 27 September 2020 – you must satisfy the original decline in turnover test only.

    JobKeeper extension periods

    From 28 September 2020, the JobKeeper extension begins. There are two extension periods:

    • Extension 1 – from 28 September 2020 to 3 January 2021
    • Extension 2 – from 4 January 2021 to 28 March 2021.

    Existing participant

    If you are an existing participant – enrolled in the JobKeeper Payment scheme before 28 September 2020 – you have already satisfied the original decline in turnover test and do not need to satisfy it again. However, to continue to qualify for the JobKeeper payments during the extension periods – from 28 September 2020 – you must also satisfy the actual decline in turnover test.

    New participants – excluding Table A Universities

    If you are enrolling in the JobKeeper Payment scheme from 28 September 2020, you will need to satisfy the actual decline in turnover test. Although you also need to satisfy the original decline in turnover test, you will satisfy that test if you satisfy the actual decline in turnover test. You can enrol on that basis.

    See also:

    Decline in turnover test percentage

    The required decline in turnover percentage relevant to your organisation remains the same for the JobKeeper extensions, being:

    • 30% if your turnover is $1 billion or less
    • 50% if your turnover is more than $1 billion
    • 15% if you are an ACNC-registered charity other than a school or university.  

    See also:

    JobKeeper extension 1 – 28 September 2020 to 3 January 2021

    For this period of the scheme you must satisfy the actual decline in turnover test for the September quarter.

    JobKeeper extension 2 – 4 January 2021 to 28 March 2021

    For this period of the scheme you must satisfy the actual decline in turnover test for the December quarter. It does not matter whether you satisfied the actual decline in turnover test for the September quarter.

    If you do not satisfy the actual decline in turnover test

    If you do not satisfy the actual decline in turnover tests for either JobKeeper extension 1 or extension 2, you can't claim JobKeeper payment for fortnights in the relevant extension period.

    You should notify your eligible employees, eligible business participant and/or eligible religious practitioner if you are unable to claim JobKeeper payments for them. You should also advise them that you are no longer obligated to pay them an amount that is at least equal to the JobKeeper payment in those fortnights.

    Your eligible employees will not be able to be nominated for JobKeeper by any other entity.

    You do not need to notify us if you do not satisfy the actual decline in turnover test for a JobKeeper extension period.

    Requalifying for JobKeeper payments

    If you are not eligible in extension 1 but requalify for extension 2, you do not have to re-enrol for JobKeeper.

    You can read the JobKeeper guides for details about how you notify us of your actual decline in turnover.

    Ongoing reporting

    In addition to the turnover tests, you will need to meet ongoing monthly turnover reporting requirements.

    You do not need to do monthly reporting during extension periods in which you are not eligible to receive JobKeeper payments.

    Find out more:

    See also:

    Fair Work Act decline in turnover test

    There is a 10% decline in turnover test under the Fair Work Act. The Fair Work Ombudsman can provide you with advice and assistance about this test. This test is not administered by the ATO.

    Information on the actual decline in turnover test may help you work out if you meet the 10% decline in turnover test under the Fair Work Act. If you have any questions about this test, visit the Fair Work OmbudsmanExternal Link.

    Last modified: 18 Nov 2020QC 63695