I am pleased to share that we have achieved another breakthrough regarding the criteria for JobKeeper. If you are post-revenue and have suffered from the crisis, then please, please, please make sure you have registered as JobKeeper is for you!
The first tranche of alternative eligibility tests for the JobKeeper programme have now been signed into law. Full details are available on the ATO website: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/?anchor=Alternativetest#Alternativetest
I’ve put together a summary of the three categories that would most likely apply to you:
1. NEW BUSINESSES
Businesses that commenced within the prior 12 months will qualify for JobKeeper if their turnover has declined by 30% compared to either:
(a) Their average turnover for the life of the business, or
(b) Their average turnover for the prior three months.
2. HIGH-GROWTH BUSINESSES
Where a business has experienced an increase of turnover greater than:
(a) 50% or more in the prior 12 months,
(b) 25% or more in the prior six months, or
© 12.5% or more in the prior three months,
they will qualify for JobKeeper if their GST turnover has declined by 30% compared to their average turnover for the prior three months.
3. BUSINESSES WITH IRREGULAR TURNOVER
Where a business has experienced turnover in one-quarter of the prior 12 months that is less than half their turnover in another quarter, they will qualify for JobKeeper if their turnover has declined by 30% compared to their average turnover for the prior 12 months. Businesses that experience cyclical turnover (e.g. regular seasonal variance) are unable to use this test.
- ‘Turnover’ refers to GST turnover (though the tests still apply even if the business is not registered for GST), and may be measured either monthly or quarterly.
- Businesses may qualify under any one of the alternative tests, even if multiple tests may apply to them.
- Contractors are eligible to apply for JobKeeper as sole traders. A further alternative test has been put in place that accounts for sickness, injury or leave taken during the relevant comparison period.
- The above summary is not legal advice and is not intended to be a substitute for the text of the legislative instrument, explanatory statement or ATO guidance. We encourage you to assess your own eligibility and seek advice where necessary.
The full set of eligibility rules is available in the legislative instrument published at https://www.legislation.gov.au/Details/F2020L00461 and an explanatory statement with examples has been published at https://www.legislation.gov.au/Details/F2020L00461/Explanatory%20Statement/
AND — The deadline to enrol for the initial JobKeeper period has now been extended until 31 May 2020. 🎉
For those that are pre-revenue, there are other support measures on a state and federal level that you can access.
I also want to acknowledge Senator Jane Hume and her Senior Policy Advisor Harry Godber with whom we have been working very closely in driving measures through that meet the needs of fintech and the wider startup ecosystem.
Alex Scandurra, CEO, Stone & Chalk
24 April 2020