Since the new JobKeeper payment was announced by the Australian Government yesterday, there has been some confusion as to how businesses determine if they have had more than a 30 or 50 percent reduction in revenue in order to be eligible to register for this payment.

The Government clarified this today as follows:

1. Most businesses would be expected to establish that their turnover has fallen in the relevant one month or three months (depending on the their Business Activity Statement reporting period i.e. monthly or quarterly) compared to the same period a year earlier;
2. The ATO has discretion to consider additional information that the business can provide to establish that they have been significantly affected by the impacts of Coronavirus in the following circumstances:
   1. The business was not in operation a year earlier; or
   2. Turnover a year earlier was not representative of their usual or average turnover e.g. there was a large acquisition during the period, the business was newly established, or the turnover is typically highly variable;
3. The ATO has discretion to set out alternative tests that would establish eligibility in specific circumstances e.g. eligibility may be established as soon as a business has ceased or significantly curtailed its operations;
4. There will be some tolerance where employers, in good faith, estimate a greater than 30 (or 50) per cent fall in turnover but actually experience a slightly smaller fall.

This will become even more clearer when the Government releases the legislation, which is expected shortly.