You can satisfy the actual decline in turnover test in two ways:
- the basic test
- the alternative test.
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.
For JobKeeper fortnights from 28 September 2020 you will need to meet an actual decline in turnover test. The actual decline in turnover test is similar to the original decline in turnover test. However:
- 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 if you were registered for GST.
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.
For more information please contact your Client Relationship Manager.
Source: ATO
