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Actual decline in turnover test

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Basic Test

This test is satisfied when your actual GST turnover for the turnover test period quarter falls short of the relevant comparison period, by the specified shortfall percentage (generally 30%).

Alternative test

If entity not satisfies basic turnover decline test they can apply alternative tests to assess whether turnover decline or not.

If there were events or circumstances outside the usual business setting that resulted in your relevant comparison period in 2019 (September or December 2019 quarter) not being appropriate, then an alternative test may apply.

However, if an entity satisfies the basic test, it does not need to satisfy an alternative test. Also, you only need to satisfy one of the alternative tests listed below even if more than one could apply.

The alternative turnover tests can be used to determine whether an entity has satisfied the actual decline in turnover test for the September 2020 quarter or the December 2020 quarter.

Test for a:

  • Business that started after the comparison period started but before 1 March 2020
  • Business acquisition or disposal that changes the entity's turnover
  • Business restructure that changed the entity’s turnover
  • Business that has had a substantial increase in turnover
  • Business affected by drought or natural disaster
  • Business that has an irregular turnover
  • Sole trader or small partnership with sickness, injury or leave
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