If you don’t meet the eligibility criteria for JobKeeper 2.0, the ATO has released initial information covering alternative scenarios that you may be able to qualify for.
The JobKeeper alternative tests only replace the actual decline in turnover test for the September 2020 quarter, or the December 2020 quarter. Your business and employees must remain eligible for all other aspects of the programme. For more information on the JobKeeper extension please read our prior article – JobKeeper 2.0 – The new requirements.
What are the JobKeeper Alternative Tests?
- New business – alternative 1
- New business – alternative 2
- Substantial increase in turnover
- Irregular turnover
- Restructure, acquisition, or disposal
- Drought or natural disaster
- Sole Trader or Partnership with sickness, injury or leave
- Temporarily ceased trading
While these tests are broadly similar to the original JobKeeper 1.0 tests, there are some differences. Here are some examples of the changes:
| Test | Old Rule | New Rule |
| All tests | Current period based on projection | Actual turnover only |
| New business, irregular and substantial tests | Monthly and quarterly comparisons allowed | Quarterly comparisons only |
| Irregular test | Comparison of 12 months prior to test period | Comparison of 12 months prior to either test period OR 1 March 2020 |
| Substantial test | Comparison of 3 months prior to test period | Comparison 3 months prior to either test period OR 1 March 2020 |
| Restructure, acquisition or disposal | If multiple events, must use the last period after the last event | Varies depending on the scenario, can use a period after the comparison but before the test period |
| Sole Trader and Partnership | Test the month after a return to work due to sickness, injury or leave | Test the month prior to absence due to sickness, injury or leave |
Working out your decline in turnover
In order for you to work out your decline in turnover, listed below are the four most common tests Eligibility Criteria, Test Period, and Comparison Periods. For most business you still need to show a drop in turnover of at least 30% (15% for a not for profit or 50% for a large business).
New Business – JobKeeper Alternative Test 1
Eligibility – You are eligible under this test if your entity started business
- after the first day of the relevant comparison period,
- but not on or after 1 March 2020
Test Period – Your test period is the current period, either
- 1 July 2020 to 30 September 2020, or
- 1 October 2020 to 31 December 2020 (for the 2nd Extension)
Comparison Period – to work out your comparison period
- Starting from the first whole month after the business commenced, count each whole month before 1 March 2020
- Determine the average, and multiply by 3 to get the quarterly comparison
New Business – JobKeeper Alternative Test 1 (but only commenced in Feb 2020)
Eligibility – You are eligible under this test if your entity started business during February 2020
Test Period – Your test period is the current period, either
- 1 July 2020 to 30 September 2020, or
- 1 October 2020 to 31 December 2020 (for the 2nd Extension)
Comparison Period – to work out your comparison period
- Turnover for the days the business was in operation, divided by the number of days in operation, then multiplied by 29 to get the equivalent monthly turnover
- Multiply the monthly turnover by 3 to get the quarterly comparison
New Business – JobKeeper Alternative Test 2
Eligibility – You are eligible under this test if your entity started business
- after the first day of the relevant comparison period,
- but not on or after 1 March 2020
Test Period – Your test period is the current period, either
- 1 July 2020 to 30 September 2020, or
- 1 October 2020 to 31 December 2020 (for the 2nd Extension)
Comparison Period – your comparison period is the quarter prior to 1st March 2020. i.e. 1 December 2019 to 29 February 2020.
Substantial Increase in Turnover
Eligibility – You are eligible under this test if starting at either the current period or 1 March 2020:
- 50% or more in the 12 months immediately before
- 25% or more in the 6 months immediately before
- 12.5% or more in the 3 months immediately before
- Refer to the table below for ease:
| Increase in turnover immediately before | 12 months (50 percent) | 6 months (25 percent) | 3 months (12.5 percent) |
| September 2020 quarter (July to September 2020) | Increase from June 2019 to June 2020 | Increase from December 2019 to June 2020 | Increase from March 2020 to June 2020 |
| December 2020 quarter (October to December 2020) | Increase from September 2019 to September 2020 | Increase from March 2020 to September 2020 | Increase from June 2020 to September 2020 |
| 1 March 2020 | Increase from February 2019 to February 2020 | Increase from August 2019 to February 2020 | Increase from November 2019 to February 2020 |
Test Period – Your test period is the current period, either:
- 1 July 2020 to 30 September 2020, or
- 1 October 2020 to 31 December 2020 (for the 2nd Extension)
Comparison Period – to work out your comparison period, choose either:
- The 3 months immediately before the current period, or
- The 3 months immediately before the 1 March 2020
Irregular Turnover
Eligibility – You are eligible under this test if
- for each of the 4 quarters (consecutive 3 month periods) ending immediately before either:
- The current period, or
- 1 March 2020
- The lowest is no more than 50% of the highest quarter
- Your turnover is not cyclical (e.g. fruit growing)
Test Period – Your test period is the current period, either
- 1 July 2020 to 30 September 2020, or
- 1 October 2020 to 31 December 2020 (for the 2nd Extension)
Comparison Period – to work out your comparison period, choose either
- The average monthly turnover for 12 months immediately before either:
- The current period, or
- 1 March 2020
- Then multiply this average by 3 to get the quarterly comparison
Other Scenarios
If you have circumstances covering any of the following:
- Restructure, acquisition, or disposal
- Drought or natural disaster
- Sole Trader or Partnership with sickness, injury or leave
- Temporarily ceased trading during the relevant comparison
Additional rules do apply, however, as these are quite particular to individual business circumstances and we have not covered them in detail. Please contact us to for tailored advice.
Remember – you only need to qualify under one of the alternative tests if you don’t meet the basic decline in turnover test. You can check any of the tests that could apply and failing one of the alternative tests doesn’t mean you fail them all.
Further help:
We will continue to provide details on coronavirus government assistance as soon as the information is available. Should you have any questions about JobKeeper, or need help to confirm your eligibility, please contact Marsh & Partners for further advice. You can reach us on (07) 3023 4800 or at mail@marshpartners.com.au.
You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.
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