The legislation confirming the alternate tests for JobKeeper 2.0 has been passed and although the ATO web guidance is yet to be released, this legislation confirms that the same alternate tests which applied to the first JobKeeper scheme will be applied for the extensions.
The 7 tests are as follows: –
- Businesses which started after the comparison period;
- Businesses that acquired or disposed of part of their business;
- Business that underwent a restructure;
- Businesses which have experienced a significant increase in turnover;
- Businesses impacted by natural disasters such as drought or bush fires;
- Businesses with an irregular turnover;
- Sole traders or small partnerships which had an owner with a serious illness or injury.
Just like the new turnover test, these alternate tests must be calculated using actual turnover figures, not projected turnover like the initial JobKeeper scheme tests. In addition, the calculation of income must be based on the GST reporting method or if the business does not lodge any BAS, on either a cash or accruals method. Once this method is selected it must be used moving forward.
There are some other minor changes and additions to some of these tests and hopefully some further guidance will be provided by the ATO shortly. However this provides some clarity for businesses regarding meeting the ongoing turnover criteria so planning can now start to be done.
If you need assistance with your JobKeeper eligibility moving forward, please do not hesitate to contact us.