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  • Actual decline in turnover test

    For JobKeeper fortnights from 28 September 2020 you will need to meet an actual decline in turnover test.

    You can satisfy the actual decline in turnover test in two ways:

    There is also a modified basic test for group employer labour entities.

    Generally, businesses will use the basic test, which is based on GST turnover. An alternative test has been made available for some cases where the normal comparison period is not appropriate. There are eight instances where you can use an alternative test.

    The actual decline in turnover test is similar to the original decline in turnover test however there are some key differences:

    • it must be done for specific quarters only
    • you must use actual sales made in the relevant quarter, not projected sales, when working out your GST turnover
    • you must allocate sales to the relevant quarter in the same way you would report those sales to a particular business activity statement (BAS). This is either the cash or non-cash basis of accounting
      • Entities who are registered for GST and have not changed accounting methods, can only use the accounting method they use in completing their BAS
      • Specific rules apply to entities who changed accounting methods or became registered for GST, or are not registered for GST. For more information, see Accounting methods to determine when you make a supply.
       

    The actual decline in turnover test must be satisfied to be eligible for both JobKeeper extension periods:

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

    JobKeeper Extension 1 – 28 September 2020 to 3 January 2021

    The actual decline in turnover test is satisfied for extension 1 when your current GST turnover for the quarter ending 30 September 2020 (the months of July, August and September) has declined by the specified shortfall percentage (15%, 30% or 50%) in comparison to your current GST turnover for the quarter ending 30 September 2019.

    If the quarter ending 30 September 2019 is not an appropriate comparison period, you may be able to use an alternative test.

    JobKeeper Extension 2 – 4 January 2021 to 28 March 2021

    The actual decline in turnover test is satisfied for extension 2 when your current GST turnover for the quarter ending 31 December 2020 (the months of October, November and December) has declined by the specified shortfall percentage (15%, 30% or 50%) in comparison to your current GST turnover for the quarter ending 31 December 2019.

    If the quarter ending 31 December 2019 is not an appropriate comparison period, you may be able to use an alternative test.

    See also:

      Last modified: 11 Nov 2020QC 63698