JobKeeper Extension – Alternative Tests

September 17, 2020
Tax Bulletin – September 2020
October 1, 2020

The ATO has repealed and reissued the alternative decline in turnover tests for the purposes of the extended JobKeeper scheme. The same alternative tests still apply but some amendments have been made so they apply appropriately to the new scheme rules.

As the comparison period is a quarter under the extended scheme, each of the alternative tests now only provide an alternative quarterly calculation.

Entity new to business; and Sole trader or small partnership (no more than 4 individual partners) with sickness injury or leave

These alternative tests are essentially unchanged.

Disposals, acquisitions and restructures

These alternative tests originally provided a single comparison period based on the month immediately following the month in which the latest acquisition, restructure or disposal occurred (where there were multiple events).

This has been amended to allow flexibility to choose to apply the test to each event separately. This is to avoid entities having to choose a month that may fall within a period impacted by COVID-19.

Business had Substantial increase in turnover; and Irregular turnover

These alternative tests originally required the increase in turnover or irregular turnover to occur over the relevant period up until the month prior to the turnover test period. This still applies, however, an entity will now also have the option to apply this test if the increase in turnover or irregular turnover occurred in the period prior to 1 March 2020.

This is also to avoid entities having to use a period that has been impacted by COVID-19.

Business affected by drought or natural disaster

All of the new alternative tests provide entities with a choice as to whether they exclude bushfire or drought affected months from comparison calculations and instead use earlier months (whereas under the original alternative tests it was not a choice).


For further information on any of these matters, or for general assistance, please contact either Natalie Claughton on 0403 251 373 or Jacci Mandersloot on 0414 987 485.


The information contained in this bulletin is intended to  provide  general information only and is not intended to serve as tax advice. Specific advice should always be sought regarding a taxpayers’ particular circumstances. Please contact MC Tax Advisors if you would like assistance with the issues identified in this email.