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JobKeeper September eligibility cash or accrual method

Newbie

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A partnership in Victoria qualified under cash method for Job Keeper in April and has been reporting under cash since then. Business actually does work for 3rd party in June  (example) invoices in that month and is paid in July (under contract). Would it be allowed to change method of reporting for actual September quarter under the extention? Paayment received in July was work done invoiced in June, Payment in August will be for work done and invoiced in July. If continue reporting in cash will not reflect business downturn in Sept quarter.

 

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Community Support

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Hi @Nicole3

 

There are some details just released in the Basic test - under the section in Step 3, 'Accounting methods to determine when you make a supply'. The key point is that you need to allocate 'supplies' (to work out GST turnover) on the same GST reporting basis (even if you are not GST registered) eg in quarterly BAS's. Another point is under section, 'GST accounting basis that applies to you' -

" If you are registered for GST for both test periods and have not changed your accounting basis for GST – you use the same accounting basis you used for preparing your business activity statements. " (italics added)

 

The general reasoning behind these new guidelines for Jobkeeper extension, is to keep the GST turnover calculation consistent for both turnover test periods, and provide a more accurate comparison for comparing turnover (that apply for both 'Extension 1' & 'Extension 2'). There are specific rules mentioned to ensure this, as stated in a later paragraph at the above webpage.

 

Bear in mind, that the comparison periods have changed since originally published on the Treasury website. As per the

Jobkeeper extension announcement the comparison for turnover for 'Extension 1' will be between Sept-Dec 2020, and Sept-Dec 2019. This may make a difference in  working out whether you believe that your business need to change your GST accounting basis in reporting turnover for Jobkeeper & activity statement reporting.

3 REPLIES 3

Devotee

Replies 0

Until Legislation is released, it's anyones guess.

 

Mine is that you will need to continue the same method.

Devotee

Replies 0

under the current rules you have to choose one method and stick to it for jk puposes. there is no indication that this will change for jk 2.0

 

you will need to check the new rules when they are formalised

 


@Nicole3 wrote:

A partnership in Victoria qualified under cash method for Job Keeper in April and has been reporting under cash since then. Business actually does work for 3rd party in June  (example) invoices in that month and is paid in July (under contract). Would it be allowed to change method of reporting for actual September quarter under the extention? Paayment received in July was work done invoiced in June, Payment in August will be for work done and invoiced in July. If continue reporting in cash will not reflect business downturn in Sept quarter.

 


 

Most helpful response

Community Support

Replies 0

Hi @Nicole3

 

There are some details just released in the Basic test - under the section in Step 3, 'Accounting methods to determine when you make a supply'. The key point is that you need to allocate 'supplies' (to work out GST turnover) on the same GST reporting basis (even if you are not GST registered) eg in quarterly BAS's. Another point is under section, 'GST accounting basis that applies to you' -

" If you are registered for GST for both test periods and have not changed your accounting basis for GST – you use the same accounting basis you used for preparing your business activity statements. " (italics added)

 

The general reasoning behind these new guidelines for Jobkeeper extension, is to keep the GST turnover calculation consistent for both turnover test periods, and provide a more accurate comparison for comparing turnover (that apply for both 'Extension 1' & 'Extension 2'). There are specific rules mentioned to ensure this, as stated in a later paragraph at the above webpage.

 

Bear in mind, that the comparison periods have changed since originally published on the Treasury website. As per the

Jobkeeper extension announcement the comparison for turnover for 'Extension 1' will be between Sept-Dec 2020, and Sept-Dec 2019. This may make a difference in  working out whether you believe that your business need to change your GST accounting basis in reporting turnover for Jobkeeper & activity statement reporting.