Announcements
Looking for answers? Search our popular topics or ask a new question.

ATO Community

Re: Jobkeeper new business registration

Highlighted

Newbie

Views 1544

Replies 8

Hi there, I enrolled in the job keeper scheme thinking that it included new business that started within the current financial year, do I need to un-enrol and register for the alternative test?
1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

Community Support

Replies 6

Hi @Jayivy and @mac_bridie 

 

Thanks for reaching out to the Community, that's a great question.

 

If you are a new business and have applied an alternative test to calculate your turnover, as your business did not exist in the current period, there is no need to re-enrol for the payment. As long as you have selected that your business has experienced or is likely to experience a fall in turnover, when applying the correct percentage for the period of the expected decrease, I believe you have completed the application correctly. 

 

@mac_bridie to answer your second question, as your business commenced after the relevant comparison period, you fall into a circumstance where the alternative test applies. 

 

I hope this information helps you both.

Kind regards,

Tahlia

8 REPLIES 8
Highlighted

Superuser

Replies 0

Hey,
I'm in the same situation. I'd love to know too !
I'm also keen to know if we have to satisfy this info which is on the criteria but doesn't apply go most new businesses:

- a 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it carrying on a business, or
- an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that it made a taxable, GST-free or input-taxed sale.

This is so confusing for new businesses many of us don't have that and I was notified by an ATO representative to enrol already and it would be "fine".
Highlighted

Most helpful response

Community Support

Replies 6

Hi @Jayivy and @mac_bridie 

 

Thanks for reaching out to the Community, that's a great question.

 

If you are a new business and have applied an alternative test to calculate your turnover, as your business did not exist in the current period, there is no need to re-enrol for the payment. As long as you have selected that your business has experienced or is likely to experience a fall in turnover, when applying the correct percentage for the period of the expected decrease, I believe you have completed the application correctly. 

 

@mac_bridie to answer your second question, as your business commenced after the relevant comparison period, you fall into a circumstance where the alternative test applies. 

 

I hope this information helps you both.

Kind regards,

Tahlia

Highlighted

Newbie

Replies 5

Hi TahliaL

I have applied as you suggest using the only available option online which is not suitable for new business for the alternative tests.

Contrary to what you suggest I have been refused eligibility as I had no tax return for last years tax year as the business had not commenced then.

How do new businesses who need to qualify under the alternatie tests apply. ATO was unable to assist me on the phone today.

 

Highlighted

Superuser

Replies 4

@TahliaL

That's weird. I enrolled after applying the alternative test and have been paid.

I did get asked by a ATO representative to fill out a Application for discretion form. I've since done that and have heard back from the ATO asking for more information.

There is so much misleading info. I hope all new businesses are having to do this too and not just me because I've gone through the right channels.
Highlighted

Newbie

Replies 3

The legislation for new businesses which weren't commenced in the 2018/9 tax year so can't compare their turnover states you don't need the commissioners discretion so they shouldn't be asking you for complete a form. You automatically are eligible but it seems the ATO can't cope with it
Highlighted

Superuser

Replies 0

@confusedcovid can you please direct me to where you see that information ? It would be really useful.
Highlighted

Community Support

Replies 1

Hi @confusedcovid,

 

If you are operating as a sole trader, your entity is eligible if:

  • on 1 March 2020, it carried on a business in Australia
  • it satisfies the fall in turnover test for the relevant period
  • it satisfied certain conditions at 12 March 2020, being
    • it had an ABN on 12 March 2020, and
    • it had lodged, on or before 12 March 2020, at least one of:
      • a 2018–19 income tax return showing it had an amount included in its assessable income in relation to it carrying on a business, or
      • an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing it made a taxable, GST-free or input-taxed sale.

 

There is more information available for sole traders and other entities on our website.

 

I hope this helps.

Highlighted

Newbie

Replies 0

Wrong.

New business can qualify under the additional legislation and if ATO staff don't know this, this is the main issue new business are having:

 

Alternative tests here from ATO website:

 

https://www.ato.gov.au/Forms/JobKeeper---application-form-for-Commissioner-s-discretion-in-respect-o...

and

Alternative test

The Commissioner has determined alternative tests for fall in turnover for classes of entities where there is not an appropriate relevant comparison period in 2019 for the purposes of an entity in the class of entities satisfying the basic test.

The relevant appropriate comparison period in 2019 is a calendar month that ends after 30 March 2019 and before 1 October 2019 or a quarter that starts on 1 April 2019 or on 1 July 2019.

However, if an entity satisfies the basic test, it does not need to go to an alternative test determined by the Commissioner.

Circumstances where an alternative test applies:

  • The entity commenced business after the relevant comparison period (the business did not exist in that period) but not on or after 1 March 2020.
  • The entity acquired or disposed of part of the business after the relevant comparison period (the business is not the same business in that period as it is now).
  • The entity undertook a restructure after the relevant comparison period (the business is not the same business in that period as it is now).
  • The entity’s turnover substantially increased by
    • 50% or more in the 12 months immediately before the applicable turnover test period, or
    • 25% or more in the 6 months immediately before the applicable turnover test period, or
    • 12.5% or more in the 3 months immediately before the applicable turnover test period.
     
  • The entity was affected by drought or other declared natural disaster during the relevant comparison period.
  • The entity has a large irregular variance in their turnover for the quarters ending in the 12 months before the applicable turnover test period, excluding entities that have cyclical or regular seasonal variance in their turnover, or
  • The entity is a sole trader or small partnership where sickness, injury or leave have impacted an individual’s ability to work which has affected turnover.

If an alternative decline in turnover test applies in these circumstances, the Commissioner also sets out what that alternative decline in turnover test is.