I’m here with the COVID-19 continuity update for Australian businesses on 25th September.
Update on ATO guidelines for JobKeeper Extension Alternative Tests
The ATO has released guides for alternative tests for JobKeeper Extension. We have been waiting for this for many weeks so I know many of you will welcome the news.
There are several options for alternative tests – the most appropriate test for Tenfold clients will be the substantial increase in turnover test, due to the fact that many of our clients’ businesses increased their turnover in the period leading up to COVID-19.
In anticipation of the alternative test, at Tenfold we modeled two different options we expected the ATO could roll out for businesses with increasing turnover. I’m pleased to see that they have gone with the “either/or” option as this gives Tenfold clients the best opportunity to be eligible.
To refresh your memory regarding the substantial increase in turnover alternative test for the original round of JobKeeper support:
You firstly have to prove that you had a substantial increase in revenue leading up to when COVID-19 impacted you. If you can prove this, then you’re able to use a more recent comparison period rather than comparing to 2019 (when your turnover would have been substantially less). Once you have proven your eligibility for the substantial increase in turnover test, then you must prove that you have experienced the 30% decline in revenue versus the comparison period.
For JobKeeper Extension, you need to prove your business experienced a substantial increase in turnover in the periods leading up to 1st March 2020 or 1st July 2020.
See the below table for the qualification periods for JobKeeper Extension Alternative Test – substantial increase in turnover:
At Tenfold, our business coaching team has developed a model to assess eligibility under the alternative tests. If you think this may be applicable to your business, please contact Tenfold to discuss your situation with a business coach.
For information about all the alternative tests, visit the ATO website here: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Actual-decline-in-turnover-test/?page=3#Alternative_test
Of course, always review all your numbers and check what you have submitted in your BAS with your accountant.
Whether you are eligible for the alternative test will not only impact your ability to receive support payments, but also your ability to make JobKeeper enabling directions as discussed in my briefing on 22nd September – see here: https://tenfoldcoaching.com.au/covid-19-business-continuity-22nd-september/
Have a good weekend,
Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching