Coronavirus Economic Response Package (Payments and Benefits) Rules 2020

PART 2 - JOBKEEPER PAYMENT  

Division 2 - Entitlement based on paid employees  

SECTION 8A   DECLINE IN TURNOVER TEST - MODIFIED TEST FOR CERTAIN GROUP STRUCTURES  

8A(1)    
This section applies, in addition to section 8 , to an entity (an employer entity ) if:

(a) the employer entity is a member of a consolidated group, consolidatable group, or a GST group; and

(b) the employer entity ' s principal activity is supplying other members of the group with services ( employee labour services ) consisting of the performance of work by individuals the employer entity employs; and

(c) the Commissioner has not made a determination under subsection (5) in relation to the employer entity.

Modified test

8A(2)    
The employer entity satisfies the decline in turnover test at a time (the test time ) if:

(a) in a turnover test period in which the test time occurs, the employer entity:

(i) supplies employee labour services to one or more members of the group (each of which is a test member ) that have as their principal activity the making of supplies to entities other than members of the group; and

(ii) does not supply employee labour services to entities that are not members of the group (disregarding supplies that are merely incidental to the principal activity of the employer entity); and

(b) the employer entity would satisfy the decline in turnover test in subsection 8(1) at the test time if the modifications in subsection (3) of this section were made.

Note 1:

An entity that satisfies the decline in turnover test under this subsection may be entitled to a jobkeeper payment under this Division or Division 3 .

Note 2:

See subsection 8(7) for the meaning of turnover test period .

8A(3)    
For the purposes of paragraph (2)(b), the modifications are that, in applying subsection 8(1) :

(a) instead of the employer entity ' s projected GST turnover for the turnover test period, the sum of the projected GST turnovers for that period of each test member is to be used; and

(b) instead of the employer entity ' s current GST turnover for a relevant comparison period, the sum of the current GST turnovers for that period of each test member is to be used.

Note 1:

See subsection 8(7) for the meaning of relevant comparison period .

Note 2:

Current GST turnover and projected GST turnover are modified for the purposes of this section: see subsection 8(8) .

8A(4)    
However, if:

(a) an alternative decline in turnover test determined by the Commissioner under subsection 8(6) applies to a test member; and

(b) the alternative test involves applying subsection 8(1) to the test member for the turnover test period, but using a different amount instead of the test member ' s current GST turnover for a relevant comparison period;

then in applying paragraph (3)(b) of this section, that different amount is to be used instead of the test member ' s current GST turnover for the period.

Determination that section does not apply

8A(5)    
The Commissioner may determine in writing that this section does not apply to an entity if the Commissioner is satisfied, having regard to the purpose of the jobkeeper scheme and any other matter the Commissioner considers to be relevant, of either or both of the following:

(a) that the test in this section is unsuitable, in the circumstances of the group, for measuring the extent to which employees within the group are performing work in operations that have suffered a relevant decline in turnover;

(b) that the application of this section to the entity might, in the circumstances of the group (including the group ' s history of compliance with its obligations under taxation laws), risk the integrity of the Commissioner ' s administration of the jobkeeper scheme.

Membership of more than one group

8A(6)    
To avoid doubt, if an entity is a member of one or more of the following:

(a) a consolidated group;

(b) a consolidatable group;

(c) a GST group;

it satisfies the decline in turnover test in subsection (2) if it satisfies that test in relation to its membership of any of those groups.