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Re: Business restructure alternative test - Jobkeeper 2.0

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I'm new

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Is there any definition of what constitutes a business restructure for the alternative test for the Jobkeeper extension?

 

I'm a sole trader and last year was operating my business part time while also working part time. In January, I left my job so I could work full time on the business, which I have been doing since then. Would this be a business restructure for the purposes of the alternative tests for the jobkeeper extension?

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Devotee

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Hi @lucyq,

 

There is no guidance that I am aware of so your guess is probably as good as mine.

 

For me, a restructure would be more than you choosing to work more hours, it would cover things like moving the business into different industry, changing the way the fundamentals of the business operate, etc.

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Most helpful response

Devotee

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Hi @lucyq,

 

There is no guidance that I am aware of so your guess is probably as good as mine.

 

For me, a restructure would be more than you choosing to work more hours, it would cover things like moving the business into different industry, changing the way the fundamentals of the business operate, etc.

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Initiate

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I am interested in this question as well - exactly what constitutes a restructure?

 

I have a company that previously only had a Director working in the business in September 2019 and they subsequently employed an additional full time staff member in January 2020. 

When I compare the Sales there is a minimal decrease from September 2020 to September 2019 - however, once the new employee started effectively the sales doubled due to there being two staff members. Is this an effective 'restructure' under the alternative test? As there has obviously been a significant decrease in sales when I compare what the sales should be now.

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Devotee

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Adding or subtracting staff just because you are busier or less busy isn't a restructure.

 

Something fundamental about the business needs to change for it to be a restructure.

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Newbie

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I'd like to know this too as the change leads to a change in income. I'm a sole-trader with my youngest kid just starting school at the end of Jan. I took on more contracts switching from part time to full time in Feb 2020. I'm down 49% if I compare my income to what I earned in Feb and March when I was full time but only 29% if I compare my income now to when I was part time. It doesn't really seem appropriate to compare full time work against part time work.

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Community Support

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Hi @SLN77,

 

For JobKeeper purposes a restructure is when an entity type may change as a result of a merger, where two companies become a partnership for example.  In this instance a new ABN will need to be created.

 

Acquisitions is another common way a business can restructure.

 

True, it is more than a business increasing the number of employees.

 

It is great to hear businesses are growing during these difficult times.