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Definition of GST Turnover for the Job Keeper Payment

Initiate

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Hi I want to know when we calculate the GST turnover for the jobkeeper payment is it just sales(less GST) we look at or are we looking at the net figure (ie sales less deductions- both excluding GST)?

 

Thanks in advance

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ATO Certified Response

Community Manager

Replies 4

Hi @MaryH

 

GST turnover is your total business income (excluding certain sales), not your profit. There's a good example on Business.gov.au that helps explain this:

Say you run an online clothing store. If you sell $80,000 worth of clothes in a year, you’d have to register for GST. This is because your GST turnover is over the $75,000 threshold – even if you only make $40,000 in profit.

 

For JobKeeper purposes, you need to exclude:

  • GST amounts
  • Input taxed sales
  • Sales not connected to your business (private sales)
  • Sales not made for payment
  • Payments for no supply
  • Gifts and donations (aside from those mentioned above)
  • Sales not connected with Australia

 

There are also some other changes to how GST turnover is calculated for JobKeeper:

  1. The first is the time frame. Generally, we talk about GST turnover as an annual figure, but for JobKeeper purposes we use a specific month or quarter.
  2. Next applies just to GST Group members. We are calculating the GST turnover for group members as if they weren’t in a group. So for supplies made between group members, we are including this as income for the purposes of the original turnover test.
  3. We are including certain gifts from a deductible gift recipient, as well as gifts worth over $5000.00 from a registered charity (that is not a deductible gift recipient).
  4. We are excluding conditional grants received by charities registered with ACNC from government agencies, local governing bodies or the United Nations as long as the charity notifies the ATO of its irrevocable election to exclude the grants within 7 days of applying for JobKeeper.
  5. The modified calculation includes amounts received by universities under the Higher Education Support Act 2003 or the Australian Research Council Act 2001.
  6. External territories are being included in the indirect tax zone (Australia).

 

Josh

5 REPLIES 5

Most helpful response

ATO Certified Response

Community Manager

Replies 4

Hi @MaryH

 

GST turnover is your total business income (excluding certain sales), not your profit. There's a good example on Business.gov.au that helps explain this:

Say you run an online clothing store. If you sell $80,000 worth of clothes in a year, you’d have to register for GST. This is because your GST turnover is over the $75,000 threshold – even if you only make $40,000 in profit.

 

For JobKeeper purposes, you need to exclude:

  • GST amounts
  • Input taxed sales
  • Sales not connected to your business (private sales)
  • Sales not made for payment
  • Payments for no supply
  • Gifts and donations (aside from those mentioned above)
  • Sales not connected with Australia

 

There are also some other changes to how GST turnover is calculated for JobKeeper:

  1. The first is the time frame. Generally, we talk about GST turnover as an annual figure, but for JobKeeper purposes we use a specific month or quarter.
  2. Next applies just to GST Group members. We are calculating the GST turnover for group members as if they weren’t in a group. So for supplies made between group members, we are including this as income for the purposes of the original turnover test.
  3. We are including certain gifts from a deductible gift recipient, as well as gifts worth over $5000.00 from a registered charity (that is not a deductible gift recipient).
  4. We are excluding conditional grants received by charities registered with ACNC from government agencies, local governing bodies or the United Nations as long as the charity notifies the ATO of its irrevocable election to exclude the grants within 7 days of applying for JobKeeper.
  5. The modified calculation includes amounts received by universities under the Higher Education Support Act 2003 or the Australian Research Council Act 2001.
  6. External territories are being included in the indirect tax zone (Australia).

 

Josh

Initiate

Replies 1

Hi Josh,

If you invoice a New Zealand company for work done in Australia, but the file is sent to New Zealand and therefore the invoice is GST exempt, does this amount need to be included in your GST Turnover calculation for JobKeeper?

 

Thanks

 

Community Support

Replies 0

Hi @KCullen

 

The turnover for JobKeeper is based on actual turnover.

 

Supplies that are excluded in the calculation of current GST turnover are:

  • supplies that are input taxed
  • supplies that are for no consideration
  • supplies that are not made in the course of your enterprise, or
  • supplies that are not connected with Australia.

Unless the supply falls into one of the above categories then it needs to be included in your turnover calculation.

 

Ari

 

Newbie

Replies 1

Hi Josh,

 

What if a client has sold  business vehicle in a quarter, do we need to include that for GST turnover test? As far as i believe since this is not their core business activity, this transaction should be excluded.

Any information on this with an ATO link would be greatly appreciated as i couldnt find anything specific to this topic.

 

Regards

NG

Community Support

Replies 0

Hiya @lodgemytax,

 

The sale of a business vehicle is included in your actual GST turnover. Sales of capital assets were not included originally in the projected GST turnover. One of the big changes for the JobKeeper extension is the move from projected GST turnover to actual GST turnover.

 

On our site regarding the actual GST turnover, it states:

 

"Unlike projected GST turnover (relevant to the original decline in turnover test), current GST turnover includes supplies that:

  • you made by transferring capital assets"