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JobKeeper 2.0 Alternative Tests

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JobKeeper 2.0 again requires businesses to qualify on decline in turnover.

You can again use the JobKeeper Alternative Tests if you don’t satisfy the Ordinary Tests. Alternative Tests assist businesses that may have either experienced growth, just started or had a restructure such that comparing revenue under the ordinary test is not appropriate.

Newly Established Business

Alternative Test 1:

Use average monthly turnover from commencement and multiply this by 3 to calculate an amount to compare the test period revenue to

Alternative Test 2:

Use the cumulative turnover of the 3 months immediately before 1 March 2020. Note if you had traded for less than 3 months before 1 March 2020 you cannot use this test.

Business Acquisition or Disposal

If you acquired or disposed part of your business which has affected your turnover between the test period and the comparison period (April 2019 – Feb 2020 for March 2020 test month)

Alternative Test 3:

Multiply by 3 the month immediately after the acquisition or sale as the comparison period

Entity Restructure

If you’ve restructured which has impacted on your turnover

Alternative Test 4:

Multiply by 3 the month immediately after the restructure as the comparison period

Business Expansion / Rapid Growth

If your business has experienced an increase in turnover of at least

  • 50% in 12 months immediately before test period, or 1 March 2020 OR
  • 25% in the 6 months immediately before test period, or 1 March 2020 OR
  • 12.5% in the 3 months immediately before test period, or 1 March 2020

To test an entity’s increase in current GST turnover in the 12 months before 1 March 2020, the entity compares their current GST turnover for the month of February 2019 with their current GST turnover for the month of February 2020. The test for an increase in the 6 months and 3 months before 1 March 2020 the entity compares their current GST turnover for February 2020 against their current GST turnover for the months of August 2019 and November 2019 respectively.

Alternative Test 5:

lets you compare to either the 3 months immediately before the test periof or 1 March 2020 (depending on which period you calculated growth on) if you satisfy the growth requirements

 

Additional tests exist for natural disaster, irregular turnover and sole traders with sickness, injury or leave

You can read the legislative Instrument and Explanatory Statement here

 

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