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Alternative Test - Increase in turnover

Newbie

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Replies 3

I am looking into the Alternative tests and an Increase in turnover.

 

Can I use 1 March 2020 as my date to look at the increase in turnover or do I have to use June 2020 month?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 2

Hi @DECAA

 

As per that test the required date to be used is 1 March 2020 or immediately before the applicable turnover test period.

 

If you used the period immediately before the applicable turnover test period then to determine if your turnover has declined by at least 15%, 30% or 50%:

  • for the September quarter actual decline in turnover test - compare your current GST turnover for April to June 2020 with the current GST turnover for September 2020 quarter
  • for the December quarter actual decline in turnover test - compare your current GST turnover for July to September 2020 with the current GST turnover for December 2020 quarter.

If you used the period immediately before 1 March 2020, then to determine if your turnover has declined by at least 15%, 30% or 50%, compare:

  • your entity’s current GST turnover for December 2019 to February 2020, with
  • the applicable current GST turnover in the turnover test period (the September or December 2020 quarter).

All the best!

3 REPLIES 3

Most helpful response

Former Community Support

Replies 2

Hi @DECAA

 

As per that test the required date to be used is 1 March 2020 or immediately before the applicable turnover test period.

 

If you used the period immediately before the applicable turnover test period then to determine if your turnover has declined by at least 15%, 30% or 50%:

  • for the September quarter actual decline in turnover test - compare your current GST turnover for April to June 2020 with the current GST turnover for September 2020 quarter
  • for the December quarter actual decline in turnover test - compare your current GST turnover for July to September 2020 with the current GST turnover for December 2020 quarter.

If you used the period immediately before 1 March 2020, then to determine if your turnover has declined by at least 15%, 30% or 50%, compare:

  • your entity’s current GST turnover for December 2019 to February 2020, with
  • the applicable current GST turnover in the turnover test period (the September or December 2020 quarter).

All the best!

Newbie

Replies 1

So does that mean we are allowed to choose to use either row 1 or row 3 for the September 2020 eligibility in the table linked below?

 

https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Actual-decline-in-turnover-test/?anchor=A...

 

Former Community Support

Replies 0

Hi @DECAA

 

Yes you can select whichever comparison period you require in order to assess your eligibility for September.

 

You would select row 1 if you wanted to test the percent increase in turnover immediately before September 2020 quarter which means that you would be testing with June 2020 turnover.

 

If you select row 3 you will be testing with February 2020 turnover as that is the month immediately before 1 March 2020. You will need to select the test that applys for when you have the increase in turnover.

 

Under the table there is examples which outline what needs to be compared for September quarter, December quarter and before 1 March 2020.

 

All the best!