JobKeeper Decline in GST Turnover Test

The “turnover test period” must either be

  • a calendar month that ends after 30 March 2020 and before 1 October 2020 or
  • a quarter that starts on 1 April 2020 or 1 July 2020
Compare projected GST turnover for the: With current GST turnover for the:
month of March 2020 month of March 2019
month of April 2020 month of April 2019
June 2020 quarter June 2019 quarter

The foregoing BASIC test will be satisfied if the GST turnover is at least 30% less than any one of the corresponding 2019 turnovers. The decline in GST turnover test is only required to be satisfied once.

The business may use a monthly comparison even if it is a quarterly BAS lodger and equally the business is free to use a quarterly comparison even if it is a monthly BAS lodger.

GST (BAS) accounting normally used, e.g. cash or accrual, should be used to determine sales for the month or quarter.

If not registered for GST, use the same accounting method as used for income tax purposes.

Apart from the BASIC GST turnover test above, there is an ALTERNATIVE decline in GST turnover test for classes of entities as follows:

1.  New businesses

2.  Businesses with a substantial increase in turnover

3.  Businesses with an irregular turnover

4.  Businesses affected by drought or natural disaster

5.  Business acquisition or disposal that changed the entity’s turnover

6.  Business restructure that changed the entity’s turnover

7.  Sole traders or small partnerships with sickness, injury or leave.

If you need assistance with JobKeeper payment enrolment or reporting, CONTACT US without delay!