The ATO has announced a new alternate test which businesses may find useful in assisting them meet the reduction in turnover requirements for the JobKeeper extended payments. It applies to those businesses whose turnover has not decreased in the September 2020 period due to an event that occurred in the corresponding September 2019 period that was outside the normal course of business.
Unlike the previously released tests that need a natural disaster such as bushfire, this test only requires the business to have been shut for a period of at least one week. The materials make clear that taking normal leave, off seasonal closures or public holidays will not count as an unplanned absence.
If passed, business have two alternate calculations they can use. They can test September 2020 quarterly turnover to: –
- The quarter from the year immediately prior to the closure (i.e. if the closure occurred in the September 2019, then you would use the September 2018 quarter as the comparison); or
- The quarter for the three months immediately prior to the closure (i.e if the closure occurred in August 2019, then you would add the turnovers for July, June and May 2019)
If you need assistance determining your JobKeeper eligibility or have any queries, please do not hesitate to contact us.