JobKeeper Payment – Update 4

The Australian Taxation Office has provided more guidance about the JobKeeper scheme.

Turnover Test – Cash or accruals basis

You may use an accruals basis of accounting to calculate both the current GST turnover and projected GST turnover as both calculations require you to include sales that you have made or are likely to make without any reference to when you are paid.

However, if you prepare your activity statements on a cash basis, the ATO will allow you to calculate both the current and projected GST turnovers on a cash basis. The basis used must be the same for calculating your projected and current GST turnover.

Estimating your projected GST turnover

You need to identify the sales you made, or are likely to make, during the turnover test period.

Given that you can test eligibility part way through a period, when applying the fall in turnover test, you need to consider what you expect to happen for the remainder of that period. Relevant considerations include:

  • the period during which the business is not expected to trade because it has been closed due to the coronavirus, or its ability to trade has been restricted
  • recent patterns in trading that are expected to continue
  • revised business plans.

The reasons for a fall or expected fall in turnover are not prescribed and are not limited only to the direct impacts of the coronavirus.

You need to keep detailed records on the reasoning for your projected turnover.