Businesses have until 31 Oct 2020 to determine and submit their decline in turnover information and meet their wage conditions to qualify for the JobKeeper extension.
What is the process that businesses must follow to confirm eligibility? Here’s an outline laid down by James O’Halloran, deputy commissioner at the ATO.
- Basic test or the Comparison – Identify the turnover period first and then make a comparision. In many instances, according to James O’Halloran, businesses will in fact be using the G1 label from the activity statement where that’s appropriate and, of course, suitable,”.
- GST turnover – Work at the GST turnover for the periods. The shortfall percentages apply, which in most instances will be 30 per cent. Then you determine if it has declined by the specified amount.
“So, know your period, know the turnover, and obviously know the relevant test for you.”
Take note that the turnover test must be based on actual sales made in the relevant quarter and not projected sales, as was the case over the previous six months.
As at 28 Sept 2020, the JobKeeper payment rates are split into a two-tiered system.