Alternative turnover test rules introduced

As was the case for JobKeeper 1.0, a legislative instrument has now been registered which provides businesses with access to alternative turnover tests if they would otherwise not satisfy the basic reduction in turnover testing rules.

The tests are similar to those under JobKeeper 1.0 and incorporate alternative turnover tests where a business:

  • Commenced during the last 12 months such that it cannot compare its September 2020 quarter turnover / December 2020 quarter turnover with that 12 months earlier
  • Made an acquisition or sale such that its turnover in the September 2020 quarter / December 2020 quarter is no longer comparable with that 12 months earlier
  • Restructured within the last 12 months such that its turnover between September 2020 quarter / December 2020 quarter is no longer comparable with that 12 months earlier
  • Had significant growth in turnover (50% over 12 months, 25% over 6 months or 12.5% over 3 months) immediately prior to the September 2020 quarter / December 2020 quarter, or immediately prior to 1 March 2020, but then experienced a reduction in turnover in the September 2020 quarter / December 2020 quarter
  • Has been impacted by drought or natural disaster
  • Has an irregular turnover
  • Is a sole trader or small partnership without employees that has had its turnover impacted by sickness, injury or leave
  • Temporarily ceased trading during the relevant comparison period

An entity only needs to satisfy one of the alternative tests listed above (even if more than one could apply).

Please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or if you have any further questions relating to the above.

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