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  • Alternative test

    The alternative tests outlined on this page are only relevant for JobKeeper fortnights before 28 September 2020.

    If you are enrolling for fortnights from 28 September 2020, you should use the actual decline in turnover test – alternative tests. Although you need to satisfy the original decline in turnover test, you will satisfy that test if you satisfy the actual decline in turnover test. The exception is Table A Universities that will use the turnover test for universities.

    If there were events or circumstances outside the usual business setting that resulted in your 2019 relevant comparison period (month or quarter) not being appropriate for applying the basic test then an alternative test may apply.

    However, if an entity satisfies the basic test, it does not need to go to an alternative test. Also, you only need to satisfy one of the alternative tests listed below even if more than one could apply.

    Test for a:

    You can get more information on these alternative tests in the Legislative Instrument and Explanatory Statement:

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    Test for a business that started after the comparison period

    Use this test if your entity started business after the relevant comparison period (the business did not exist in that period) but not on or after 1 March 2020.

    You can apply the first alternative test in this category if your entity started business before 1 March 2020 but after the relevant comparison period.

    You can only apply the second alternative test in this category if your entity started business before 1 March 2020 but after the relevant comparison period and before 1 December 2019.

    An example is if your entity started business in June 2019 and therefore you cannot compare your GST turnover in April 2020 with your GST turnover in April 2019.

    You can use either of these alternative tests if both are applicable to you.

    Alternative test 1

    If your business started before 1 February 2020:

    • you should compare your average monthly GST turnover since your entity started against the applicable projected GST turnover to work out if your GST turnover has declined by 15%, 30% or 50% or more as applicable
    • your average monthly GST turnover will be the total of the current GST turnovers for each whole month since your entity started business divided by the number of those whole months.

    Example 11 – Average monthly GST turnover

    Barbara started business on 15 August 2019. She adds her current GST turnover from September, October, November, December, January, and February together. She does not include August as she was not in business for the whole month of August).

    She divides the total current GST turnover by 6 to give her the entity’s average GST turnover for six months of operation.

    This figure is her average monthly GST turnover.

    If Barbara uses May 2020 as her turnover test period, she compares her average monthly GST turnover figure with her projected GST turnover for May 2020 to determine if her GST turnover has declined by 30% or more (if her turnover is $1 billion or less).

    If Barbara uses the quarter starting on 1 April 2020 as her turnover test period, she multiplies her average monthly GST turnover figure by three. She then compares that figure against her projected GST turnover for the April 2020 quarter to determine if her GST turnover has declined by 30% or more (if her turnover is $1 billion or less).

    End of example

    If your business started in February 2020

    You should compare your average monthly GST turnover in February with your applicable projected GST turnover to determine if your GST turnover has declined by 15%, 30% or 50% or more as applicable.

    Your average monthly GST turnover for February is your total current GST turnover for the days your business was in operation in February 2020 divided by the number of days you were in business in February 2020 and then multiplied by 29 (the number of days in February 2020).

    Example 12 – Business started in February 2020

    Douglas started business on 15 February 2020. He divides his current GST turnover for the month of February by 15, the number of days between and including 15 February and 29 February. He then multiplies that by 29 (the number of days in February 2020).

    This figure is his average monthly GST turnover for February.

    If Douglas uses April 2020 as his turnover test period, he compares his average monthly GST turnover for February with his projected GST turnover for April 2020 to determine if his turnover has declined by 30% or more (if his turnover is $1 billion or less).

    If Douglas uses the quarter starting on 1 July 2020 as his turnover test period, he multiplies his average monthly GST turnover for February by three. He then compares that figure with his projected GST turnover for the July 2020 quarter to determine if his turnover has declined by 30% or more (if his turnover is $1 billion or less).

    Note: This example only demonstrates how a business that started on or after 1 February 2020, but before 1 March 2020 can satisfy the original decline in turnover test. To claim the JobKeeper Payment, the other eligibility requirements must also be met.

    End of example

    Alternative test 2

    You can only use this test if your business started after the relevant comparison period but before 1 December 2019.

    In making a comparison to your applicable projected GST turnover, this test uses your three months’ current GST turnover instead of your average monthly GST turnover.

    To calculate your three month’s current GST turnover, add your current GST turnovers for the months of December 2019, January 2020 and February 2020.

    Monthly comparison – if you use a month as a turnover test period, divide your three months’ current GST turnover by three. Compare that figure with your applicable projected GST turnover to determine if your GST turnover has declined by 15%, 30% or 50% or more as applicable.

    Quarterly comparison – if you use a quarter as a turnover test period, use the total current GST turnover for December 2019, January 2020 and February 2020. Compare that figure with your applicable projected GST turnover for the quarter beginning on 1 April 2020 or on 1 July 2020 to determine if your GST turnover has declined by 15%, 30% or 50% or more as applicable.

    Drought or bushfire

    If you experienced drought or bushfire after your business started, you exclude:

    • those months in calculating your average monthly GST figure (unless those are the only months since you started business), or
    • your three months’ current GST turnover figure if your entity qualified or received one of the following
      • your entity qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals, or
      • your entity received any concessions given by us where drought has caused financial difficulty, or
      • you qualified for any Disaster Recovery Funding Arrangements 2018 assistance measures.
       

    Example 13 – Affected by drought or bushfires

    Li is calculating her average monthly GST turnover from 1 July 2019 to 29 February 2020. During that time, she qualified for the ATO’s Bushfire 2019–20 lodgment and payment deferrals in the months of December 2019 and January 2020. In calculating her average monthly GST turnover, Li excludes the months of December and January from that calculation and only uses the months of July, August, September, October, November and February.

    End of example

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      Last modified: 28 Sep 2020QC 62132