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  • Court and Administrative Appeals Tribunal decisions

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    AAT decision on cash flow boost and new businesses

    On 10 March 2021, the Administrative Appeals Tribunal (AAT) handed down its decision in Slatter and Federal Commissioner of Taxation [2021] AATA 456External Link.

    AAT decision

    The decision relates to meeting the eligibility criteria for the government’s economic stimulus measure Boosting cash flow for employers.

    The AAT held that the applicant was not eligible for cash flow boost payments because they did not make a taxable supply in a tax period that applied to it that started on or after 1 July 2018 and ended before 12 March 2020. Since the applicant was incorporated in January 2020 and registered for GST on a quarterly reporting cycle, it did not have a tax period that applied to it that ended before 12 March 2020.

    How it affects you

    The decision supports the approach we have taken to the administration of the measure.

    The government’s JobKeeper stimulus measure involves similar considerations in relation to claims for an eligible business participant, resulting in the same interpretation being applied consistently across the measures.

    Full Federal Court decision on JobKeeper and backdated ABNs

    On 24 March 2021, the Full Federal Court handed down its decision in Federal Commissioner of Taxation v Apted [2021] FCAFC 45. The case concerned the requirement, for eligible business participant claims, that the entity had an ABN on 12 March 2020, or a later time allowed by the Commissioner.

    The Court held that backdating an ABN to have an effective date on or before 12 March 2020 did not satisfy the requirement for the entity to have had an ABN on 12 March 2020. The Court also held that a decision in respect of the Commissioner’s discretion to allow a later time to have an ABN is reviewable in the manner prescribed by Part IVC of the Taxation Administration Act 1953 as part of a decision on an entity's entitlement to JobKeeper and that the Commissioner's discretion should be exercised in the applicant's circumstances.

    How it affects you

    We are currently considering the Court's decision and its implications. The Court's decision does not change the need to satisfy all of the other eligibility requirements.

    If the Commissioner were to seek special leave to appeal to the High Court, this application would need to be made by 21 April 2021.

    Where we have postponed finalising a decision regarding your eligibility for the cash flow boosts pending the Court's decision, we will contact you shortly to provide you with an update.

    We are taking a similar position in regard to eligibility for JobKeeper.

    We will provide further information on your next steps once we have considered the decision and its implications. Check this webpage during April 2021 for updates.

      Last modified: 26 Mar 2021QC 61925