Federal Register of Legislation - Australian Government

Primary content

Rules/Other as amended, taking into account amendments up to Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Amendment Rules 2020
Administered by: Treasury
Registered 22 Oct 2020
Start Date 10 Oct 2020

 

Made under subsection 20(4) of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 and subsection 8(6) of the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020.

 

Compilation No. 1

Compilation date:                              10 October 2020

Includes amendments up to:           Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Amendment Rules 2020 (F2020L01295)

 

 

Prepared by the Australian Taxation Office, Canberra

About this compilation

This compilation

This is a compilation of the Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules (No. 2) 2020 that shows the text of the law as amended and in force on 10 October 2020 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Federal Register of Legislation (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Federal Register of Legislation for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Federal Register of Legislation for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.


 

 

1.    Name of instrument

This determination is the Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules (No. 2) 2020.

 

2.    Commencement

This instrument commences on the day after it is registered on the Federal Register of Legislation.

 

3.    Application

The instrument applies for a class of entities seeking to be qualifying employers for JobKeeper payments, when the Commissioner is satisfied that there is not an appropriate relevant comparison period for the purposes of satisfying both:

·         the actual decline in turnover test in section 8B of the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (the Rules) for JobKeeper fortnights starting on, or after, 28 September 2020, and

·         the decline in turnover test in section 8 of the Rules (and if applicable, section 8A of the Rules) for JobKeeper fortnights starting on, or after, 28 September 2020.

This instrument applies to provide alternative bases for satisfying both of those tests.

Note: Where an entity has satisfied the decline in turnover test under section 8 of the Rules for JobKeeper fortnights before 28 September 2020, they do not need to apply the test again for JobKeeper fortnights starting on, or after, 28 September. The entity will only need to apply this instrument for the purposes of satisfying the actual decline in turnover test in section 8B of the Rules.

 

4.    Determination

This determination applies to entities, in the classes of entities described in this determination, seeking to be a qualifying employer for JobKeeper payments covered by sections 7 to 14 of this instrument.

 

5.    Definitions

Subject to any addition or change contained in another paragraph, an expression used in this instrument that is defined in section 4 of the Rules (including, for the avoidance of doubt subsection 4(2) of the Rules) has the same meaning in this instrument as it has in the Rules.

In this instrument:

Business includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee.

Current GST turnover has the same meaning as in the Rules.

Note: For the purposes of the actual decline in turnover test in section 8B of the Rules, the Commissioner may make a legislative instrument that the supplies in a class of supplies are to be treated as if they had been made at a time or times different from the time at which the supplies were actually made. Any such determination by the Commissioner applies to the calculation of current GST turnover for a relevant comparison period in this instrument.

Drought Help concessions means any concessions given by the Australian Taxation Office where drought has caused financial difficulty and any Disaster Recovery Funding Arrangements 2018 assistance measures.

Entity means an individual, a body corporate, a body politic, a partnership, any other unincorporated association or body of persons, a trust, a superannuation fund, and approved deposit fund.

Relevant comparison period has the same meaning as in the Rules.

Small partnership is a partnership as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997 with four or fewer individual partners.

Turnover test period has the same meaning as in the Rules.

 

 

Alternative decline in turnover tests

 

7.    Business commenced

(1)          An entity applies either of the alternative tests under this section if the entity commenced business after the first day of the relevant comparison period and before 1 March 2020.

(2)          The first alternative test is:

the entity multiplies the average monthly current GST turnover by three and uses that figure instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(3)          The average monthly current GST turnover is:

(a)          if the entity commenced business before 1 February 2020, the sum of the entity’s current GST turnover for each whole month after the entity commenced business and before 1 March 2020 divided by the number of whole months, or

(b)          if the entity started business before 1 March 2020, but on or after 1 February 2020, the entity’s current GST turnover before 1 March 2020, divided by the number of days the entity was in business and multiplied by 29.

(4)          The second alternative test is:

the entity uses the 3 months’ current GST turnover instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(5)          The 3 months’ current GST turnover is the total of the current GST turnover in the 3 months immediately before 1 March 2020.

(6)          The second alternative test in subsection (4) and paragraph (7)(b) is not available if the entity had not commenced business at least 3 months before 1 March 2020.

(7)          If the relevant comparison period is a calendar month:

(a)          for the first alternative test, the entity uses the average monthly current GST turnover instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules; and

(b)          for the second alternative test, the entity divides the 3 months’ current GST turnover by 3 and uses that figure instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: This subsection is only applicable for the decline in turnover test under section 8 of the Rules including  section 8A of the Rules (if applicable).

(8)          For the purposes of subsections (3), and (5), if the entity:

(a)          qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals, then the entity may exclude the calendar months covered by the Bushfires 2019–20 lodgment and payment deferrals from the calculation, unless those are the only months since the entity commenced the business, or

(b)          received Drought Help concessions, then the entity may exclude the months covered by the Drought Help concessions from the calculation, unless those are the only months since the entity commenced the business.

 

8.    Business acquisition or disposal that changed the entity’s current GST turnover

(1)          An entity applies the alternative test under this section if:

(a)          there was an acquisition or disposal of part of their business at, or after, the start of the relevant comparison period and before the applicable turnover test period, and

(b)          the acquisition or disposal changed the entity’s current GST turnover.

(2)          The alternative test is:

the entity multiplies the current GST turnover from the month immediately after the month in which the acquisition or disposal occurred by three and uses that figure instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(3)          For the purposes of subsections (2) and (4), if there is no whole month after the acquisition or disposal and before the applicable turnover test period, then use the month immediately before the applicable turnover test period.

(4)          If the relevant comparison period is a calendar month, the entity uses the current GST turnover from the month immediately after the month in which the acquisition or disposal occurred instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: This subsection is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).

(5)          For the purposes of subsections (2), (3) and (4), if the entity:

(a)          qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals, then the entity may exclude the months covered by the Bushfires 2019–20 lodgment and payment deferrals and use the nearest month before or after the acquisition or disposal as appropriate, unless the months covered by the concession are the only months available, or

(b)          received Drought Help concessions, then the entity may exclude the months covered by the Drought Help concessions and use the nearest month before or after the acquisition or disposal as appropriate, unless the months covered by the concession are the only months available.

 

9.    Business restructure that changed the entity’s current GST turnover

(1)          An entity applies the alternative test under this section if:

(a)          there was a restructure of their business, or part thereof, at, or after, the start of the relevant comparison period and before the applicable turnover test period, and

(b)          the restructure changed the entity’s current GST turnover.

(2)          The alternative test is:

the entity multiplies the current GST turnover from the month immediately after the month in which a restructure occurred by three and uses that figure instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(3)          For the purposes of subsections (2) and (4), if there is no whole month after the restructure and before the applicable turnover test period, then use the month immediately before the applicable turnover test period.

(4)          If the relevant comparison period is a calendar month, the entity uses the current GST turnover from the month immediately after the month in which the restructure occurred instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: This subsection is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).

(5)          For the purposes of subsections (2), (3) and (4), if the entity:

(a)          qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals, then the entity may exclude the months covered by the Bushfires 2019–20 lodgment and payment deferrals and use the nearest month before or after the restructure as appropriate, unless the months covered by the concession are the only months available, or

(b)          received Drought Help concessions, then the entity may exclude the months covered by the Drought Help concessions and use the nearest month before or after the restructure as appropriate, unless the months covered by the concession are the only months available.

 

10.       Business had substantial increase in current GST turnover

(1)          An entity applies the alternative test under this section if the entity had an increase in the entity’s current GST turnover of:

(a)          50% or more in the 12 months immediately before:

(i)    the applicable turnover test period; or

(ii)   1 March 2020, or

(b)          25% or more in the 6 months immediately before

(i)    the applicable turnover test period; or

(ii)   1 March 2020, or

(c)          12.5% or more in the 3 months immediately before

(i)    the applicable turnover test period; or

(ii)   1 March 2020.

(2)          The alternative test is:

the entity uses the 3 months' current GST turnover instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(3)          The 3 months’ current GST turnover is:

(a)          if subparagraphs (1)(a)(i), (1)(b)(i) or (1)(c)(i) apply, the total of the entity’s current GST turnover in the 3 months immediately before the applicable turnover test period, or

(b)          if subparagraphs (1)(a)(ii), (1)(b)(ii) or (1)(c)(ii) apply, the total of the entity’s current GST turnover in the 3 months immediately before 1 March 2020.

(4)          If the relevant comparison period is a calendar month, the entity divides the 3 months’ current GST turnover by 3 and uses that figure instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: This subsection is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).

(5)          For the purposes of subsections (2), (3) and (4), if the entity:

(a)          qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals, the entity may use the 3 month period before the Bushfires 2019–20 lodgment and payment deferrals commenced to calculate the 3 months’ current GST turnover, or

(b)          received Drought Help concessions, the entity may use the 3 month period before this concession commenced to calculate the 3 months’ current GST turnover.

 

11.       Business affected by drought or natural disaster

(1)          An entity applies the alternative test under this section if:

(a)          the entity conducted business or some of the business in a declared drought zone, or declared natural disaster zone, during the relevant comparison period, and

(b)          the drought or natural disaster changed the entity’s current GST turnover.

(2)          The alternative test is the entity uses the entity’s current GST turnover for the same period in the year immediately before the declaration instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8, section 8A and section 8B of the Rules.

 

12.       Business has an irregular turnover

(1)          An entity applies the alternative test under this section if:

(a)          for the consecutive 3‑month periods ending in the 12 months immediately before:

(i)    the applicable turnover test period; or

(ii)   1 March 2020,

the lowest of the entity’s current GST turnover for any of those 3-month periods is no more than 50% of the highest of the entity’s current GST turnover for any other of those 3-month periods, and

(b)          the entity’s current GST turnover is not cyclical.

(2)          The alternative test is:

the entity multiplies the average monthly current GST turnover by three and uses that figure instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(3)          The average monthly current GST turnover is:

(a)          if subparagraph (1)(a)(i) applies, the sum of the entity’s current GST turnover for each whole month in the 12 months immediately before the applicable turnover test period divided by 12, or

(b)          if subparagraph (1)(a)(ii) applies, the sum of the entity’s current GST turnover for each whole month in the 12 months immediately before 1 March 2020 divided by 12.

(4)          If the relevant comparison period is a calendar month, the entity uses the average monthly current GST turnover instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: This subsection is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).

(5)          For the purposes of subsections (2), (3) and (4), if the entity:

(a)          qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals, then the entity may exclude the calendar months covered by the Bushfires 2019–20 lodgment and payment deferrals from the calculation, unless the months covered by the concession are the only months available, or

(b)          received Drought Help concessions, then the entity may exclude the months covered by the Drought Help concessions from the calculation, unless the months covered by the concession are the only months available.

 

13.       Sole trader or small partnership with sickness, injury or leave

(1)          An entity applies the alternative test under this section if:

(a)          the entity is a sole trader or small partnership that has no employees,

(b)          the sole trader or at least one of the partners did not work for all or part of the relevant comparison period due to sickness, injury or leave, and

(c)          the current GST turnover of the sole trader or partnership was affected by the sole trader or partner not working for all or part of that period.

(2)          The alternative test is:

the entity multiplies the current GST turnover from the month immediately before the month in which the sole trader or partner did not work due to sickness, injury or leave by three and uses that figure instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(3)          If the relevant comparison period is a calendar month, the entity uses the current GST turnover from the month immediately before the month in which sole trader or partner did not work due to sickness, injury or leave instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: This subsection is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).

(4)          For the purposes of subsections (2) and (3), if the entity:

(a)          qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals in the month immediately before the month in which the sickness, injury or leave occurred, then the entity may use the nearest month before the months covered by the Bushfires 2019–20 lodgment and payment deferrals, unless the months covered by the concession are the only months available, or

(b)          received Drought Help concessions in the month immediately before the month in which the sickness, injury or leave occurred, the entity may use the nearest month before the months covered by the Drought Help concessions, unless the months covered by the concession are the only months available.

 

14.       Business temporarily ceased trading during the relevant comparison period

(1)       An entity may apply either of the alternative tests under this section if:

(a)        The entity’s business had temporarily ceased trading due to an event or circumstances outside the ordinary course of the entity’s business;

(b)       trading temporarily ceased for a week or more;

(c)        some or all of the relevant comparison period occurred during the time in which the entity’s business had temporarily ceased trading; and

(d)       the entity’s business resumed trading before 28 September 2020.

(2)       The first alternative test is:

The entity uses the current GST turnover for the same period in the year immediately before the business temporarily ceased trading instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8, section 8A and section 8B of the Rules.

(3)       The second alternative test is:

(a)        if the relevant comparison period is a quarter, then the entity uses the total of the entity’s current GST turnover in the 3 months immediately before the month in which the business temporarily ceased trading instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules, or

(b)        if the relevant comparison period is a calendar month, then the entity uses the current GST turnover from the month immediately before the month in which the business temporarily ceased trading instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: Paragraph (b) is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).

(4)       For the purposes of subsections (2) and (3), if the entity:

(a)        qualified for the ATO’s Bushfires 2019-20 lodgment and payment deferrals, then the entity may exclude the months covered by the Bushfires 2019-20 lodgment and payment deferrals and use the nearest month before or after the period, quarter or month as appropriate, unless the months covered by the concession are the only months available, or

(b)        received Drought Help concessions, then the entity may exclude the months covered by the Drought Help concessions and use the nearest month before or after the period, quarter or month as appropriate, unless the months covered by the concession are the only months available.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

Endnote 2—Abbreviation Key

ad = added or inserted

o = order(s)

am = amended

Ord = Ordinance

amdt = amendment

orig = original

c = clause(s)

par = paragraph(s)/subparagraph(s)

C[x] = Compilation No. x

    /sub‑subparagraph(s)

Ch = Chapter(s)

pres = present

def = definition(s)

prev = previous

Dict = Dictionary

(prev…) = previously

disallowed = disallowed by Parliament

Pt = Part(s)

Div = Division(s)

r = regulation(s)/rule(s)

exp = expires/expired or ceases/ceased to have

reloc = relocated

    effect

renum = renumbered

F = Federal Register of Legislation

rep = repealed

gaz = gazette

rs = repealed and substituted

LA = Legislation Act 2003

s = section(s)/subsection(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

(md) = misdescribed amendment can be given

Sdiv = Subdivision(s)

    effect

SLI = Select Legislative Instrument

(md not incorp) = misdescribed amendment

SR = Statutory Rules

    cannot be given effect

Sub‑Ch = Sub‑Chapter(s)

mod = modified/modification

SubPt = Subpart(s)

No. = Number(s)

underlining = whole or part not

 

    commenced or to be commenced

 

Endnote 3—Legislation history

Name

Registration

Commencement

Application, saving and transitional provisions

Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules (No. 2) 2020

23 Sep 2020 (F2020L01200)

24 Sep 2020 (s 2)

 

Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Amendment Rules 2020

09 Oct 2020 (F2020L01295)

10 Oct 2020 (s 2)

Sch 1 (item 2)

 

Endnote 4—Amendment history

Provision affected

How affected

s 2..........................................

s 6……………………………..

s 14........................................

rep LA s48D

rep LA s48C

ad F2020L01295