The ATO has just released seven alternative decline in turnover tests for businesses and sole traders that do not fit neatly into the box and meet the original test to qualify for JobKeeper. The new tests cover a range of possible scenarios that might otherwise result in ‘failing’ the original test, including:

  1. different mathematical formulae and approaches;
  2. business acquisitions;
  3. changes in business structures;
  4. businesses with a substantial increase in turnover in the previous periods – either the past 12 months, or 6 months, or 3 months (but it is not quite that simple);
  5. businesses affected by drought or natural disaster;
  6. businesses with irregular turnover;
  7. sole traders and small partnerships with sickness, injury or leave.

Note, these measures are to assist businesses that would not otherwise qualify and do not operate to disqualify anyone who is otherwise eligible.

They are also tightly defined and do not apply automatically.

The deadline for registering with the ATO to qualify for the full JobKeeper entitlements and payment/top-up of eligible employees to $1,500 per fortnight or $3,000 per month is 30 April. Note, if you do not qualify for JobKeeper in April you can potentially register in future months once you have met any of the decline in turnover requirements.

If you have missed out to date and think you might be able to apply via one of the alternative measures please feel free to contact us, and we will see if we can make it (legally and ethically) work for you.

Yellow rose bud

JobKeeper for employers – if you are eligible for JobKeeper make sure any employees agree for you to be nominated as their employer so the same employee does not receive the subsidy from two employers – nomination forms are up on the ATO website now, link here.

JobKeeper newsflash

You can pay or top-up your eligible employees to $1,500 per fortnight before the end of April to qualify for the 1st two JobKeeper fortnights.

This is a once-only concession.

After that you must pay in each fortnight (or month) within the period to qualify for the subsidy in arrears.

Calendar page of April 2020