Some AIIA high growth members have been concerned that when the Jobkeeper policy was announced they would not qualify under the 30% reduction of revenue despite being under hardship due to significant drop in income from the same period last year.

It is pleasing that the Government and the ATO have heard the concerns and has made the following legislative instrument with an alternative test.

Section 9 of the Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules 2020 states the following information which may assist high growth companies in the Tech Sector, some of whom are AIIA member companies.

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

Business had substantial increase in turnover

1.An entity applies the alternative test under this section if the entity had an increase in
turnover of:

(a) 50% or more in the 12 months immediately before the applicable turnover test period, or

(b) 25% or more in the 6 months immediately before the applicable turnover test period, or

(c) 12.5% or more in the 3 months immediately before the applicable turnover test period.
2.The alternative test is:

(a) 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 in section 8 of the Rules, or

(b) if the relevant comparison period is a quarter, the entity uses the 3 months’ current GST turnover instead of the entity’s current GST turnover in section 8 of the Rules.
3.The 3 month’s current GST turnover is the total current GST turnover in the 3 months––––––immediately before the applicable turnover test period.
4.For the purposes of subsection (3), if the entity:

(a) qualified for the ATO’s Bushfires 2019–2020 lodgement and payment deferrals, use the 3-month period before the Bushfires 2019–2020 lodgement and payment deferrals commenced to calculate the 3 months’ turnover, or

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

For more information on whether your business is eligible for the Coronavirus Economic Response Package, visit the Federal Government site: https://www.legislation.gov.au/Details/F2020L00461

Contact: AIIA

Phone: 1300 665 145