CTS JobKeeper Payment - Decline in Turnover Calculator
22/04/2020
The Decline in Turnover Test is a key element of the JobKeeper Payment Scheme which needs to be satisfied before an entity becomes eligible for the JobKeeper payment.
Updated 6 May 2020 To establish the relevant fall in turnover, entities need to establish if their turnover has or will likely fall in the relevant month, quarter or 6 months (if a university) relative to the corresponding period a year earlier or alternative period. Turnover is generally calculated as it is for GST purposes. Generally, it includes all taxable and GST free supplies but not input taxed supplies but there are specific adjustments for:- Inter-entity transactions
- Capital assets (for projected turnover only)
- DGRs
- Charities
- Universities
- Method 1 – Accounting accrual (based on accounts) – Turnover recognised over the months that the services are rendered
- Method 2 – GST Attribution Basis (BAS Approach), either:
- Non-Cash (Accrual) Attribution – Turnover, generally recognised in the month the invoice is rendered
- Cash Basis of Attribution – Turnover recognised in the month the cash received
- Method 3 – Income Tax Approach (if not registered for GST) – Turnover based upon income tax derivation principles
- Monthly – March 2020 and March 2019
- Monthly – Projected April 2020 and April 2019
- Quarterly – Projected June 2020 quarter and June 2019 quarter
- Alternative specified period
- Universities
- Entities with an aggregated turnover of less than $1 billion – 30% reduction
- Entities with an aggregated turnover of greater than $1 billion – 50% reduction
- ACNC-registered charity – 15% reduction
Stephen O'Flynn |
Matt Birrell E [email protected] |