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Delayed invoice fluctuating jobkeeper turnover

Newbie

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Replies 1

I had two clients pay their 2nd quarter 2020 invoice in January 2021 which has significantly increased my 3rd quarter turnover. Needless to say my second quarter 2020 turnover was waaay down due to these delayed payments.  My concern is that these delayed payments will likely make me ineligible for jobkeeper payments for the third quarter which wouldn't have happened if my clients had paid on time. Will this require me to repay the Jan jobkeeper payment and disqualify me from potential future jobkeeper payments or is there a way to rectify this. Hope this makes sense. Thanks in advance for any replies.

Chomps

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Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Chomps,

 

It's okay!

 

For JobKeeper, you only need to demonstrate a decline in turnover for the quarter ending closest to when that JobKeeper period starts. For the January to March (extension 2) period, this means you only have to show an actual decline in turnover for the December quarter.

 

For how you report your GST turnover, it depends on how you are GST registered. If you're using an accruals basis, you report that amount invoiced in December for the December quarter, and if you're on a cash basis, you report it in the period you receive the payment, so the March 2021 quarter. By the sounds of it, you're reporting on a cash basis, though.

 

We ask you about your monthly turnover in your monthly business declaration to try to get a sense of how your business is performing. If it looks like your business is improving - that's great to hear! It's not going to impact your eligibility for JobKeeper for that month. JobKeeper is set to finish on 28th March, so it can't impact your eligibility at all if your business improves, since the scheme finishes soon.

 

This is covered on JobKeeper Guide - Sole Traders: Check actual decline in turnover. Smiley Happy

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Chomps,

 

It's okay!

 

For JobKeeper, you only need to demonstrate a decline in turnover for the quarter ending closest to when that JobKeeper period starts. For the January to March (extension 2) period, this means you only have to show an actual decline in turnover for the December quarter.

 

For how you report your GST turnover, it depends on how you are GST registered. If you're using an accruals basis, you report that amount invoiced in December for the December quarter, and if you're on a cash basis, you report it in the period you receive the payment, so the March 2021 quarter. By the sounds of it, you're reporting on a cash basis, though.

 

We ask you about your monthly turnover in your monthly business declaration to try to get a sense of how your business is performing. If it looks like your business is improving - that's great to hear! It's not going to impact your eligibility for JobKeeper for that month. JobKeeper is set to finish on 28th March, so it can't impact your eligibility at all if your business improves, since the scheme finishes soon.

 

This is covered on JobKeeper Guide - Sole Traders: Check actual decline in turnover. Smiley Happy