Home Forums JobKeeper Decline in Turnover Test JobKeeper 2 Alternative Tests – Test business acquisition or restructure

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    • #1219
      Sandra Carlsson
      Participant

      Under JobKeeper 2 Alternative Tests there is a Test for business acquisition or disposal that changed the entity’s turnover. In my client’s case the existing Entity, which qualified for original JobKeeper, acquired an additional Business within the entity on 26.6.20. As a consequence, the turnover of the entity has increased substantially in the September 20 quarter. There is not a full month of trading before the beginning of the Test period September 20 Quarter (July 20) and the acquisition date. The ATO guidance in this instance, is to use the turnover of the month June 20 (the month immediately before the applicable test period), multiply this by 3 and use this as the comparison period against the September 20 Quarter.
      From the Acquisition date to 30.6.20 there is only five days where extra income can be measured and this does not of course reflect what a full month of trading would produce. There was other income in the month of June 20 from the initial business, however this was low. Using the ATO guidance of 3 times the June 20 turnover does not give a fair comparison turnover, and the entity will not pass the Decline in Turnover Test. Question – Can the June 20 turnover be calculated in any other way ? e.g. averaging the 5 days of new trading to give a 30 day total – however I cannot find any ATO guidance to support this.
      Thanks

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    • #1233
      zwender
      Moderator

      Thanks for your comment & question Sandra – looking forward to hearing other members thoughts!

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    • #1244
      zwender
      Moderator

      @taxpolicyteam are you able to help with Sandra’s query?

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    • #1251
      Sheree Cusack
      Participant

      I’m interested in this in relation to Acquisition versus natural growth. Were you able to find any additional guidance notes or info on other forums Sandra?

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