On 21 July 2020, the Government announced that the JobKeeper Payment (‘JKP’) would be extended by a further six months to 28 March 2021 on a scaled-back dual payment basis, with businesses being required to re-assess their eligibility to remain in the scheme.

The Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No.8) 2020 legislation (the ‘Amending Rules’) was made effective from 16 September 2020, setting out the new rules governing how the scheme will operate (i.e., for JobKeeper 2.0 from 28 September 2020 to 28 March 2021).

In support of these Amending Rules, ATO Commissioner Chris Jordan registered additional legislation, including the Coronavirus Economic Response Package (Payments and Benefits) (Timing of Supplies Made and Decline in Turnover Test) Rules 2020 (No.1) (the ‘Decline in Turnover Amending Rules’) which was made effective from 17 September 2020.

These Decline in Turnover Amending Rules provide further detail for determining when a supply is made for the purposes of applying the new actual (current) GST turnover test.

One of the key changes to this test is that, in most cases, the GST accounting method to be used is that used to prepare your comparative period BAS, it is no longer a choice.

Any entity eligible to claim JobKeeper for the first time on or after 28 September 2020 will also need to consider and satisfy the original (albeit modified) projected turnover test (amongst all the other pre-existing eligibility requirements). However, where such a business satisfies the new actual turnover test, it will generally satisfy the modified original projected turnover test.

The new actual (current) decline in turnover test only applies with respect to the six-month extension of the JKP (i.e., JobKeeper 2.0), which is broken up into two separate extension periods, each with different rates of JKP and also different testing periods.

We would be pleased to assist with establishing your eligibility to remain in the scheme and providing you with any JobKeeper related assistance or advice as quickly as possible. If you need help, please contact:

Paul Congdon – Mobile 0420 757 727 or paul@rbgadvisory.com.au
James Nahlous – Mobile 0438 213 690 or james@rbgadvisory.com.au
Scott Davis – Mobile 0418 482 619 or scott@rbgadvisory.com.au

Kind regards

Carl Ireland