Some employers that were entitled to jobkeeper payments prior to, but not on or after, 28 September 2020 (‘legacy employers’) and their employees can access modified flexibilities under Part 6-4C. Legacy employers that satisfy the ‘10% decline in turnover test’ and hold a ‘10% decline in turnover certificate’ can:
subject to greater restrictions than qualifying employers.
An employer satisfies the ‘10% decline in turnover test’ for a designated quarter if the employer’s actual GST turnover for the previous quarter is at least 10% less than their actual GST turnover for the corresponding quarter in the previous year.[1]
A quarter is the period of 3 months ending on 31 March, 30 June, 30 September or 31 December.[2]
The ‘designated quarter’ for a direction or request made:
A ‘10% decline in turnover certificate’ must be issued by an ‘eligible financial service provider’ that is satisfied that the employer meets the 10% decline in turnover test for the designated quarter. An ‘eligible financial service provider’ is a registered tax agent or BAS agent, or a qualified accountant.[3]
However, a 10% decline in turnover certificate cannot be issued by:
Small business employers (that have less than 15 employees) do not require a certificate from an eligible financial service provider. Instead, if the employer or an individual who is authorised by the employer and has knowledge of the employer’s financial affairs makes a statutory declaration that says the employer satisfied the 10% decline in turnover test, this is taken to be a 10% decline in turnover certificate.[5] A person must not knowingly make a false statement in such a statutory declaration. This is a civil remedy provision.[6]