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GST  Reporting Method

In order to apply for new turnover reduction tests for September 2020 and December 2020 quarter, the entities that are registered for GST must use same method which is used for GST reporting purposes.

 

The GST reporting method that is used is based on GST turnover of business and some other reporting needs:

 

1. GST turnover less than $10 million

  • The report is done by using Simple BAS reporting method
  • If the aggregate turnover is more than $10 million, the option is either to use Simpler BAS or GST full reporting method.
  • You might use GST instalment method, if you pay GST instalments quarterly or annually.

 

2. GST turnover equal to or more than $10million

  • In this case full reporting method is used to report GST.

 

Completely based on the GST turnover, the GST reporting method is rolled over at the last of each financial year.

 

Simpler BAS

Where GST turnover will be less than $10 million, this is the default reporting method for small businesses. You are not required to complete GST calculation worksheet.

 

GST Installment Method

If your GST turnover is under $10 million and you pay GST instalments quarterly or annually, GST instalment amount will be shown on your BAS.

 

Full Reporting Method

You must report using this method, if your GST turnover is equal to $10 million or more than this.

 

GST TURNOVER

GST turnover relies on the gross income of the business that excludes: GST inclusive in sales to your customers which are not for payment and are not taxable sales not connected with business that you owe input taxed sales that are not linked to Australia.

GST turnover threshold is reached if either:

  • The current GST turnover totals $75,000 or more than this.
  • The projected GST turnover is estimated to be equal to or more than $75,000

Current GST turnover is inclusive of taxable and GST-free supplies; however, it excludes input tax supplies like residential rental income and financial supplies such as dividends and interest etc.

Calculate GST Turnover

 

80 Hour Requirement Test For Jobkeeper Payment Rates

The employee shall satisfy 80-hour threshold for JobKeeper payment if in reference period of 28-day, the total of following is equal to or more than 80 hours:

  • Actual hours of work
  • Paid leave hours of work
  • Hours paid on public holiday for absence

The tier-1 payment can be claimed if the employee satisfies 80-hour threshold. If they don’t meet this threshold limit, you may claim only tier-2 payment rate.

The full-time employee who got employed for 28-day reference period usually satisfy 80-hour threshold.

The in-depth examination is needed for eligible employees who are:·

  • Long-term casuals
  • Part-time
  • Not paid on basis of hours
  • Stood down

For stood down employees, an alternative reference period could be applicable.

More Information For:
Jobkeeper Payment Eligibilty

 

Employees Not Bound To Number Of Hours Worked

Some of the employees will be automatically qualified for the high JobbKeeper payment rate. This is applicable if the employer’s records are incomplete of total number of hours worked and any paid leave that is inclusive of salary, commissions, wages, bonuses etc., these are not linked to the contracted or hourly rate.

The employee must be falling within certain categories that include a point where they are paid minimum of $1500 in the reference period and were required to work minimum of 80 hours under enterprise agreement or contract or industrial award.

 

Extension of Wage Condition to October 31st, 2020

For JobKeeper fortnights initiating from September 28th, 2020 and October 12th, 2020, ATO has extended the date till October 31st, 2020 to meet wage condition for employees included in JobKeeper Scheme.

In this, the employers were required to demonstrate that their actual GST turnover fell in a comparable period and the rates of JobKeeper were based on average hours those were worked by employees.

 

Alternative Test

The ATO has not released any details for alternative tests that will be used to analyse either the individuals may clear new turnover reduction tests or not. The ATO has stated these will be in similarity to alternative test that are applicable in connection with original reduction in turnover test; however, the guidelines will soon be published by the authorities.

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