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 2^nd 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 2^nd 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 2^nd 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 2^nd 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 2^nd 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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