Alternative tests released for JobKeeper turnover calculations for flood-affected businesses
Member for Herbert Phillip Thompson has welcomed the release of alternative tests which will help Townsville businesses who were affected by the 2019 floods as they apply for JobKeeper.
The Deputy Tax Commissioner has made a determination under the Coronavirus Economic Response Package legislation, outlining alternative decline in turnover tests for a range of situations where special circumstances may make it difficult to meet the 30% decline in turnover test when compared with a similar period in the year before.
Mr Thompson said businesses affected by drought or natural disaster will be able to use their turnover figures for the year before the flood.
“This determination confirms in writing what I have said all along – that businesses affected by the flood will be able to use a different comparison period when calculating their drop in turnover for the purposes of applying for JobKeeper,” he said.
“As soon as JobKeeper was announced, I raised this issue with the Treasurer, who ensured Townsville locals who had already suffered a downturn this time last year because of the disaster wouldn’t be disadvantaged.
“I know there has been some angst in the community about this matter. Hopefully this determination will give peace of mind to local business owners.”
The Determination also outlines alternative tests for other situations including newer businesses, restructured businesses and those which have had changes in ownership.
The ATO and MyGov websites are expected to be updated in the coming days to reflect these latest changes to allow businesses to indicate they will require the use of this alternative test during the application process.
JobKeeper provides an eligible employer $1500 per fortnight per eligible employee to continue to pay them and keep them in their job until the restrictions are lifted.
Detailed factsheets can be obtained at https://treasury.gov.au/coronavirus/.
The Determination can be found here: https://www.legislation.gov.au/Details/F2020L00461.
ENDS