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Revised JobKeeper

Eligibility Requirements

 

Fall in GST Turnover eligibility requirement

 

Regardless of which test is applied, in other words, BASIC or ALTERNATIVE, the GST Turnover earned and declared on or after 1 March 2020 must have fallen by at least 30% compared to the “comparative” period.

 

The alternative test for “fall in GST Turnover eligibility test” for JobKeeper

 

The ALTERNATIVE TEST can be applied by applicants who cannot use the BASIC TEST.

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All fall in GST turnover tests for eligibility are based on “comparative” periods that arose BEFORE 1 March 2020.  In other words, no comparison period AFTER 29 February 2020 can be used.

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GST Turnover from 1 March 2020 is used as the current GST turnover that will be compared to the prior “comparative” period either by way of the BASIC TEST or the ALTERNATIVE TEST.

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Current GST Turnover can be monthly or per declared quarter, ie April 2020 – June 2020 or July 2020 – September 2020.

JobKeeper eligibility is based on GST TURNOVER, in other words, the applicant must be registered for GST for the entire “comparative” period.

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For the BASIC TEST, the “comparative” period is the generally accepted prior year comparative month or quarter, eg March 2020 versus March 2019 or quarter ending June 2020 versus quarter ending June 2019.

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There are two ALTERNATIVE TESTS.

 

ALTERNATIVE TEST 1 can be used where the business commenced trading BEFORE 1 March 2020, but there is no pre-1 March 2019 “comparative” period.

 

ALTERNATIVE TEST 1 itself has two options, commenced trade before 1 February 2020 or commenced trade starting 1 February 2020 but before 1 March 2020.

 

ALTERNATIVE TEST 2 can be used where the business commenced trading BEFORE 1 December 2019 but after 1 March 2019.

 

As with the BASIC test, the test can be based on monthly or quarterly GST Turnover.

The applicant can use either ALTERNATIVE TEST to test turnover eligibility.

 

ALTERNATIVE TEST 1 – COMMENCED TRADE BEFORE 1 FEBRUARY 2020

 

  1. Chose any GST turnover earned and declared for a FULL month or quarter on or after 1 March 2020 for the current turnover.

  2. Calculate your average monthly GST Turnover since commencement of business.  This is calculated as actual GST turnover declared by FULL month, divided by the number of FULL months declared.  In other words, we do not include GST turnover for part months.

  3. You then compare this average actual full month GST Turnover to the current year test month chosen.

  4. Or you multiply the average actual full month GST turnover by 3 for a quarter to compare the current year test quarter chosen.

 

ALTERNATIVE TEST 1 – COMMENCED TRADE AFTER 1 FEBRUARY 2020 BUT BEFORE 1 MARCH 2020

 

  1. If the applicant started trade after 31 January 2020 but before 1 March 2020, then number of calendar days is used to calculate the average full month GST Turnover for the “comparative” period.

  2. For example, if the applicant started trading on 15 February 2020 (ie traded for 15 calendar days before 1 March 2020), then we divide the GST turnover for the15 days and multiply this daily average by 29 to calculate an average full month GST turnover for “comparative” purposes.

  3. If the applicant wants to test the fall in GST Turnover for a quarter, then the calculation above is multiplied by 3 to determine a quarterly turnover for “comparative” purposes.

  4. This monthly or quarterly “comparative” GST Turnover is then compared to actual full month GST turnover earned and declared from 1 March 2020 or quarter earned and declared from 1 March 2020.

 

ALTERNATIVE TEST 2 – COMMENCED TRADE BEFORE 1 DECEMBER 2019 BUT AFTER 1 MARCH 2019

 

  1. To calculate the “comparative” GST turnover, you need to add the GST Turnover for December 2019, January 2020, and February 2020 (in other words, the actual quarters required for ALTERNATIVE TEST 1 does not apply to this test).  However, the GST Turnover must be reconcilable back to what was earned and declared.

  2. By adding the three months as above you have the quarter GST Turnover comparison amount.  If you want test for a month, then this quarter GST Turnover amount is divided by three to get a single full month GST Turnover.

  3. Compare this GST Turnover to the GST Turnover earned and declared on or after 1 March 2020 as with ALTERNATIVE TEST 1.

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Published: 06/09/2020 18h49

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