In Part 3 of our JobKeeper series (Part 3 – JobKeeper series) we worked through how to calculate your decline in GST Turnover under the Basic Test. Under the rules issued on 23 April 2020, there are now several new ways to consider when calculating your decline in GST Turnover under the Alternative Tests.
- If you meet the Basic Test, you do not need to worry about or consider the Alternative Test.
- If you do not meet the Basic Test, you can consider the Alternative Tests, however, you must be satisfied that the comparative period in 2019 is not appropriate before considering the Alternative Test.
- If you do not meet any of these Alternative tests, there appears to be no further options available. From our reading of these rules, you cannot apply to the Commissioner to ask him to consider a different circumstance or different alternative test. We still believe you can apply to the Commissioner for interpretive decisions under the private binding ruling process.
- When applying the Alternative Test, you still use one of the Turnover Test periods (either Monthly or Quarterly) as outlined in our Part 3 – JobKeeper series and you compare the GST Turnover or Projected GST Turnover to the alternatives in the following table, rather than to the comparative period in 2019. Please note, these figures represent a high level summary of complicated calculations – we are more than happy to work through this with our clients.
We have designed a spreadsheet to assist our clients with calculating the potential application of this Alternative Test. In addition, please note the Treasurer issued further guidelines on 24 April 2020 to include employee service entities. Legislation has not yet issued, however, we are working individually with clients that have these arrangements.
The Macro team is well equipped to help. If you require further assistance, please don’t hesitate to contact our office.
Date published: 27 April 2020