The Federal Government has finalized the Job Keeper Extension program and has made some significant changes to the test. One of the significant changes is the turnover test will be based on quarterly rather than monthly, hence you need to compare your sales from July to September 2020 against July to September 2020 to see whether the sales had decreased by 30%, if it is not, then tough luck you will not be eligible for the new job keeper program. If you can not meet the basic conditions of the extended Job keeper program, then you can look into the alternative testing to see whether you are eligible. The alternative testing includes the following:
- Businesses that started after the comparison period. Use this test if your entity started businesses after the relevant comparison period (the business did not exist in that period) but on or after 1 March 2020.
- Business acquisition or disposal that changed the entity’s turnover
- Business restructure that changed the entity’s turnover
- Business that has had a substantial increase in turnover
- Businesses affected by drought or natural disaster
- Business that has an irregular turnover
- Sole trader or small partnership with sickness injury or leave.
The test is much harder than the previous one, where the business can use either the monthly GST turnover or the quarterly GST turnover to compare to the previous period. They could use the one which is more favorable to them.
As one of the most experienced and professional accountants in Ashfield Sydney and Adelaide South Australia. We will be able to help you to sort out the many issues associated with the jobkeeper program, or the new extended Jobkeeper program. Please give John Cheng a call at 04108-829-900, or email him at firstname.lastname@example.org.