Today, details of the JobKeeper alternative test have been announced by the ATO. This test applies if there is not a relevant comparison period for the purposes of the turnover test. The ATO has determined there is not a relevant comparison period if one of the follow situations applies:
- Entity commenced business after the relevant comparison period in 2019
- Entity acquired or disposed of part of their business after the relevant comparison period in 2019
- Entity has restructure part or all of their business after the relevant comparison period in 2019
- An entity has had an increase in turnover:
- by 50% or more in the past 12 months; or
- by 25% or more in the past 6 months; or
- by 12.5% or more in the past 3 months.
- Entity has been affected by drought or other natural disaster in the relevant comparison period in 2019
- Entity has an irregular turnover that is not cyclical, such as can occur in the building and construction industry
- Entity is sold trader or small partnership and the sole trader or one of the partners did not work for all or part of the comparison period because they were sick, injured or on leave during the relevant comparison period in 2019.
We are still working through the legislative instrument and explanatory note and are expecting ATO guidance on this tomorrow. However, if you believe you may fall in one of these categories and would like more information, please reply to this email and we will come back to you as soon as possible.