With the initial JobKeeper subsidy coming to an end on 28 September 2020, businesses will be required to reassess their eligibility for the JobKeeper Extension past this date.
To do this, your business needs to apply the “Basic Turnover Test” which requires you to compare the turnover for the September 2020 quarter against the turnover for the September 2019 quarter.
Your business will be eligible if the turnover for the September 2020 quarter has decreased by 30% or more.
NOTE: For NFPs eligibility is a 15% decline in turnover and 50% for employers with an aggregated turnover exceeding $1 billion.
The ATO have also updated their guidance in relation to applying the “Alternative Turnover Test” measures. These tests will apply to those businesses where, for various reasons, the “Basic Turnover Test” may not be appropriate or even possible to apply (e.g. your business commenced after 30 September 2019).
Below is a list of links to the alternative turnover test measures:
- Business that started after the comparison period started but before 1 March 2020
- Business acquisition or disposal that changes the entity’s turnover
- Business restructure that changed the entity’s turnover
- Business that has had a substantial increase in turnover
- Business affected by drought or natural disaster
- Business that has an irregular turnover
- Sole trader or small partnership with sickness, injury or leave
Please note, your business only has to satisfy one of the alternative tests to be eligible.
If your business is not eligible for the extension
If your business is not eligible for the JobKeeper Extension, please ensure that any payroll payments to staff are adjusted appropriately (i.e. top-up payments are no longer required to be paid to staff if your business is no longer receiving JobKeeper payments from the Government moving forward).
For more information on any of these tests please refer to this ATO link.
If you are unable to assess your own eligibility or require assistance, please do not hesitate to contact our office.
We are here to help. For further updates and other resources, visit HLB Mann Judd’s COVID-19 Resource Centre.