CTS JobKeeper Payment – Decline in Turnover Calculator

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

Allocating supplies to the relevant period is based on the time when an entity makes, or is likely to make, the supplies (the ‘Strict’ Accrual approach). As this may be difficult to calculate, the ATO accepts that the following approaches may be reasonable proxies:

• 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

To assist you in determining your eligibility to satisfy the turnover fall, we have prepared a complimentary ‘CTS JobKeeper Payment – Decline in Turnover Calculator’.

To use the Calculator – click on the download button below to begin downloading the Excel spreadsheet to your computer.

Please insert your estimated turnover amounts based on 1 of the following 5 options to assess eligibility for JobKeeper payments from April 2020:

• 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

The calculator will then assess the fall in turnover for the following entities:

• 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

Contacts