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Job keeper2.0 eligibility for non registered GST business

Newbie

Views 1127

Replies 4

Hello. I have been searching for information but couldn't find a clear answer yet. So any help here will be appreciated.

I have a home based business and I am the only one working. ( Own business without any employees ) since I don't make big sales yet, I am not registered for GST. I was operating the same business same time last year and I believe if the sales has fallen by 30 percent compare to last
April - June & july- September period, I will be eligible for jobkeeper 2.0. is it right ?

Because I am not registered for GST, I don't prepare BAS every quarter, but as long as I have the sales record on my book, is it a good enough proof ?

Last question, if I charge for package plan
Example, I charge 3 sessions for $100, but all the money is transferred all in September for the work I did in June, does it mean the sales amount is seen in September quarter ?

Just trying to work out, I was down by more than 70% in June quarter, but all the money came in in September, so the September quarter is looking like just around 25% down.

Pls advice how I can work this out.
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @yu

 

This is a good question, and probably something businesses are thinking about at the moment. The Jobkeeper extension is very close to being made law, but at the moment it is still a proposal.

 

If you were to consider Paying your eligible employees, it mentions operating on a cash vs accruals basis. There is no hard and fast rule on this, but the general principle was re: Jobkeeper has been to keep it consistent, and this will probably not change in the future (can check our 'Jobkeeper extension' webpage at later stage). So, if your business operates on an accruals basis than this may be an advantage for passing the turnover test in 'Extension 1' (period from Sept 28- Jan 3 2021). However, if on cash basis, perhaps as more details are revealed regarding alternative tests, then you may be still be eligible.

 

The changes are due to start from 28 September 2020, and we expect to have more information once it has been legislated so keep an eye on our website for updates (eg Jobkeeper timeline of content updates).

4 REPLIES 4

Most helpful response

Former Community Support

Replies 0

Hi @yu

 

This is a good question, and probably something businesses are thinking about at the moment. The Jobkeeper extension is very close to being made law, but at the moment it is still a proposal.

 

If you were to consider Paying your eligible employees, it mentions operating on a cash vs accruals basis. There is no hard and fast rule on this, but the general principle was re: Jobkeeper has been to keep it consistent, and this will probably not change in the future (can check our 'Jobkeeper extension' webpage at later stage). So, if your business operates on an accruals basis than this may be an advantage for passing the turnover test in 'Extension 1' (period from Sept 28- Jan 3 2021). However, if on cash basis, perhaps as more details are revealed regarding alternative tests, then you may be still be eligible.

 

The changes are due to start from 28 September 2020, and we expect to have more information once it has been legislated so keep an eye on our website for updates (eg Jobkeeper timeline of content updates).

ATO Community Support

Replies 2

Hi @yu

 

We now have updated information. You need to work out if you'll be calculating your sales on a cash or accruals basis. Since you're not registered for GST you can choose which accounting method to apply to workout your turnover but you need to use the same method for both extension 1 and 2.

 

You can use business records that show when payments were received or when invoices were issued. I strongly encourage you to read through the basic test for further details.

 

Ari

I'm new

Replies 1

Has the ATO released information how non GST-registered business who are still suffering from downturn in trade advise the ATO this is the case, or do they not qualify for continuing JobKeeper after end of September because they do not collect GST?

ATO Community Support

Replies 0

Hi @Harlie,

 

 

"Current GST turnover" doesn't mean you have to be GST registered.

 

GST turnover basically boils down to "all sales, minus sales GST is not applicable for, and any GST you collected (if any)."

 

Since you won't have activity statements to prefill your actual decline in turnover check, you'll need to manually enter the data for your turnover periods and then select the reason "haven't lodged activity statement".

 

Hope this clarifies it Smiley Happy