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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 restructure that changed the entity’s turnover

    Use this test if your entity undertook a restructure after the relevant comparison period (the business is not the same business in that period as it is now).

    Your entity can apply this alternative test if you restructured whole or part of the entity’s business:

    • after the relevant comparison period but before the applicable turnover test period (including multiple restructures), and
    • the restructure changed your entity’s turnover.

    For example, if your entity uses the relevant comparison period of April 2019, you use this test if you restructured your business, or part of it, after 30 April 2019 and before 1 April 2020.

    The restructure must also have changed your entity’s turnover. If the restructure 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 restructure undertaken was completed. Compare that figure with your applicable projected GST turnover (for example, April 2020 or May 2020) 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 your current GST turnover from the month immediately after the month the restructure undertaken was completed and multiply that current GST turnover from that month by three. You then 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.

    Example 18 – Business restructure effected turnover

    Arjun’s entity restructured part of its business on 20 November 2019 which changed his entity’s turnover. Arjun is using April 2020 as the turnover test period. Arjun compares his current GST turnover for December 2019 with his projected GST turnover for April 2020.

    If Arjun decides to use the quarter starting 1 April 2020 as the turnover test period, he should take his current GST turnover for December 2019 and multiply it by three. He compares that figure with his projected GST turnover for the quarter starting on 1 April 2020.

    End of example

    Multiple restructures alternative test

    If your entity undertook multiple restructures after the relevant comparison period, you can use the whole month immediately after the last restructure undertaken was completed for the alternative test.

    If Arjun from the example above had undertaken multiple restructures before November 2019 then nothing will change. He still compares the current GST turnover for December 2019 with the projected GST turnover for April 2020.

    However, if he undertook another restructure in January 2020, he compares his current GST turnover for February 2020 with his projected GST turnover for April 2020.

    No whole month after last restructure alternative test

    If there is no whole month between the last restructure your entity undertook and the turnover test period, then your entity uses the month immediately before the applicable turnover test period.

    If Arjun from the example above decided the applicable turnover test period is April 2020 and he undertook a restructure in March 2020, he should compare his current GST turnover for March 2020 with his projected GST turnover for April 2020.

    Drought or bushfire

    If you experienced drought or bushfire in the month you were going to use for your entity’s current GST turnover in the alternative test, you can use the nearest month before or after the restructure undertaken was completed by your entity.

    You can only do this if in the month you were going to use for your entity’s current GST turnover, your entity qualified for or received 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 19 – Drought concessions

    For example, in example 18 above, Arjun’s entity’s last restructure was undertaken in November 2019. As Arjun was given drought concessions by the ATO in December 2019, he compares his current GST turnover for January 2020 with his projected GST turnover for April 2020.

    The exclusion of months in the alternative test 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