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  • Monthly business declarations for JobKeeper Fortnights in March need to be completed by 14 April 2021 to receive final JobKeeper payments. The JobKeeper Payment scheme finished on 28 March 2021.

    Test for a business acquisition or disposal that changed the entity’s turnover

    Use this test if your entity acquired or disposed of part of the business after the relevant comparison period (the business is not the same business in that period as it is now).

    Your entity can apply this test if:

    • your entity acquired or disposed of part of its business after the relevant comparison period (including multiple acquisitions or disposals) but before the applicable turnover test period, and
    • the acquisition or disposal changed your entity’s turnover.

    For example, if your entity uses the relevant comparison period of April 2019, you can use the alternative test where you acquired or disposed of part of your business after 30 April 2019 but before 1 April 2020. The acquisition or disposal must also have changed your entity’s turnover during that time.

    If the acquisition or disposal made by your entity did not impact the business in a way that changed its turnover, then you cannot use this test.

    Alternative test

    Monthly comparison: If you use a month as a turnover test period, use your current GST turnover from the month immediately after the month the acquisition or disposal occurred. You 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.

    Example 14 – Business acquisition changed GST turnover

    Dominic and Terry’s entity acquired part of their business on 20 November 2019 and that changed their turnover. They use May 2020 as the turnover test period. They compare their current GST turnover from December 2019 with their projected GST turnover for May 2020.

    If Dominic and Terry use the quarter starting on 1 April 2020 as their turnover test period, they should take their current GST turnover from December 2019 and multiply it by three. They compare that figure with their projected GST turnover for the quarter starting on 1 April 2020.

    End of example

    Multiple acquisitions or disposals alternative test

    If your entity made multiple acquisitions or disposals after the relevant comparison period, you use the whole month immediately after the last acquisition or disposal for the alternative test.

    Example 15 – Multiple business acquisitions or disposals

    If Dominic and Terry from the example above had made multiple acquisitions or disposals before November 2019, then nothing will change. They still compare the current GST turnover for December 2019 with their projected GST turnover for May 2020.

    However, if they made another acquisition or disposal in January 2020, they compare the current GST turnover for February 2020 with their projected GST turnover for May 2020.

    End of example

    No whole month after last acquisition or disposal alternative test

    If there is no whole month between the last acquisition or disposal your entity made and the turnover test period, then your entity uses the month immediately before the applicable turnover test period.

    Example 16 – No whole month after acquisition or disposal

    If Dominic and Terry from the example above use April 2020 as their turnover test period and their entity acquired or disposed of part of its business in March 2020, they should compare their current GST turnover for March 2020 with their projected GST turnover for April 2020.

    End of example

    Drought or bushfire

    If you experienced drought or bushfire in the month you were going to use under this test, use the nearest month before or after the acquisition or disposal if you qualified for any of the following:

    • you qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals
    • you received any concessions given by us where drought has caused financial difficulty
    • you qualified for any Disaster Recovery Funding Arrangements 2018 assistance measures.

    Example 17 – Drought concessions

    For example, in Dominic and Terry’s example above, the entity’s last acquisition or disposal occurred in November 2019. As their entity was given drought concessions by the ATO in December 2019, they compare the current GST turnover for January 2020 with their projected GST turnover for May 2020.

    The exclusion of months in all the alternative tests as shown above does not apply where the months affected are the only months available.

    End of example

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      Last modified: 28 Sep 2020QC 62132