Jobkeeper Payment – Which test option do I choose?

Over the past week I have had a number of questions raised, but the main one is how do I perform a GST turnover test? Some of you might have wisely appointed a monthly bookkeeping service and this will be looked after by them during this time. You can ask some questions, but basically they will perform whatever is required on your behalf. 

However, if you do not see the value of this kind of service, or do your own bookkeeping you might be wondering what you need to do to get this completed?

The Australian Taxation Office have three options to choose from:

• Basic Test
• Alternative Test
• Modified Basic Test

Basic Test

Comparison between two test periods of time in 2019 and 2020. 

You can use a calendar month from 30th March to 1 October 2020 or a quarter from 1 April or 1 July 2020. The important aspect is you need to ensure that you compare the turnover from your period of time in 2019 to 2020 to show a decrease in revenue to qualify for JobKeeper. 

The test is performed only once to qualify after the month of 30 March 2020 regardless of if you are registered for gst, monthly or quarterly Business Activity Statement. 

Example

The total amount of Turnover from 1st April to 30th April 2019 compared with the same dates in 2020.

Here is the step by step instructions from the Australian Taxation Office Website. 

Basic Test – Step by Step 

Alternative Test

If your business is new, you were affected by drought/fire or other circumstances that do not meet the Basic Test requirements you can perform an alternative test. This will not make things any easier for you to qualify, and be prepared that the tax commissioner my request further information to qualify. 

There are a number of variables here, so please click over to the Alternative Test Australian Taxation Office official page to read through it and complete what you need to do to qualify.  

Modified Basic Test

In some instances for example if you are a labour hire business you might have anomalies that do not fit the Basic Test method to qualify for JobKeeper. The Australian Taxation Office has taken this into account and have created this option for you to qualify. 

Please click over to the Modified Basic Test on the Australian Taxation Office website for more. 

What if I am not registered for GST?

Yes, you will still qualify. 

Please see the step by step instructions for Sole Traders / Partnerships to find out more.

Want to know more?

If you are visual person, you can pop over to the ATO TV https://tv.ato.gov.au/ato-tv/media?v=bi9or7on4xahe1

If you need anything else please click to the official Australian Taxation Office Website link  Jobkeeper Payment

Amanda Hoffmann

Amanda Hoffmann is a registered Tax Practitioner / BAS Agent No.18613005, Associate of Finance, Xero, Myob & Quickbooks Proadvisor / Trainer and a Consultant for the Australian Taxation Office.

She says she is more than just a bookkeeper with experience in real estate investing, social media, podcasting, blogging and recently recording monthly youtube episodes

Amanda loves to teach smart, easy online cloud solutions and fix messy bookkeeping. Follow her on social media and say “Hi”