As promised the ATO continues to release further guidance on JobKeeper criteria and today have released further guidance for businesses who don’t meet the reduction in turnover test but hope to be able to apply to the Commissioner to apply the alternate test.

This secondary test is reliant on approval from the Commissioner and if passed makes a business eligible for JobKeeper payments. Although the formal submission procedure has not been explained, the measure does list 7 circumstances where businesses will be able to apply under this alternate test:

• those businesses with less than 12 months of trading data. The guidance indicates that average monthly turnover of the proceeding 3 months prior to COVID-19 impacting the business will be used to see how it compares to the projected or current monthly turnover. If the turnover has reduced by 30% or more, then the business will be eligible.
• those businesses who acquired or disposed of part of the business after the relevant comparison period.
• those businesses whose turnover comparison is impacted due to an internal restructure
• those businesses whose turnover increased by more than 50% in the 12 months (or 25% in the 6 months or 12.5% in the three months) immediately before the applicable turnover test period.
• those businesses who have had their turnover impacted by bushfire or drought or other natural disaster in the comparison period
• those business where their turnover is not cyclical or seasonal but is lumpy such as those in the building and construction industry
• those sole trader or small partnership businesses where one of the business owners was sick or injured and could not work in the comparison period

If you have any questions on the JobKeeper payments or need assistance with applying, please do not hesitate to contact us.