Published 16 September 2020 | Updated 24 May 2021
The JobKeeper scheme finished from 29 March 2021. The information on this page stopped applying from this date. Find out more at Former JobKeeper scheme.
Find out about the 10% decline in turnover test for legacy employers and the rules eligible financial service providers need to follow when providing a 10% decline in turnover certificate.
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Legacy employers can use some of the JobKeeper provisions from 28 September 2020 (with some changes) if they can demonstrate a 10% decline in turnover (turnover test).
To satisfy the turnover test, a legacy employer needs to demonstrate at least a 10% decline in their actual GST turnover for a relevant previous 2020 completed quarter when compared to the same quarter from 2019. Legacy employers need a certificate confirming this from an eligible financial service provider, or they can choose to make a statutory declaration if they are a small business employer.
Legacy employers who want to use the JobKeeper provisions from 28 September 2020 need to get a certificate first.
In order to continue using the JobKeeper provisions for the next relevant period, legacy employers need to:
- satisfy the turnover test for the next quarter
- get a new certificate or make a new statutory declaration confirming this decline for that quarter.
The Fair Work Regulations have been amended to ensure that the 10% decline in turnover test under the Fair Work Act and the actual decline in turnover test under the JobKeeper Payment Rules (that employers need to satisfy to qualify for JobKeeper payments) operate consistently with each other.
Under the Fair Work Regulations, any changes made to the way actual GST turnover is calculated under the JobKeeper Payment Rules also apply to the way actual GST turnover is calculated for the turnover test under the Fair Work Act.
For information about how to apply a turnover test and what needs to be included when calculating GST turnover, go to the ATO website – Actual decline in turnover test .
Employers need to get a certificate from an eligible financial service provider that confirms the employer has satisfied the turnover test for the quarter. The certificate is issued under section 789GCD of the Fair Work Act only for the purpose of qualifying for the extended JobKeeper provisions as a legacy employer.
In order to use the JobKeeper provisions in the periods below, legacy employers need to have a certificate for the relevant quarters before the start of each period.
|Period for JobKeeper direction or agreement||Quarter to meet 10% decline in turnover test||Comparison quarter|
|28 September to 27 October 2020 (inclusive)||June 2020||June 2019|
|28 October 2020 to 27 February 2021 (inclusive)||September 2020||September 2019|
|28 February to 28 March 2021 (inclusive)||December 2020||December 2019|
The certificate needs to:
- be issued by an eligible financial service provider
- be issued in relation to the employer
- confirm that the employer has satisfied the turnover test for the relevant quarter.
An eligible financial service provider means:
- registered tax agents
- registered BAS agents
- qualified accountants.
An eligible financial service provider can’t be:
- a director or employee of the employer
- an associated entity of the employer
- a director or employee of an associated entity of the employer.
A certificate is issued based on the information provided by the employer. In providing a certificate, an eligible financial service provider needs to comply with their usual legal and professional obligations. Eligible financial service providers aren’t required to complete an audit or assurance engagement of the employer’s accounts and records in order to issue a certificate.
There may be penalties for employers who knowingly provide false or misleading information to the eligible financial service provider, or knowingly make or keep false or misleading employee records.
The requirements of the 10% decline in turnover certificate are outlined in section 789GDC of the Fair Work Act. To help legacy employers and eligible financial service providers, we’ve developed a template certificate that we consider meets the requirements of that section. Legacy employers and eligible financial service providers aren’t required to use this template.
- For information about how to apply a turnover test and what needs to be included when calculating GST turnover, go to the ATO website – Actual decline in turnover test . The ATO also has information for tax and BAS agents about the JobKeeper scheme. Learn more at the ATO website – Tax and BAS agents .
- Find out more about legacy employers on our Legacy employers page.
- Find out more about the JobKeeper provisions available to qualifying employers at:
- JobKeeper enabling stand down directions
- Changing duties or work location under the JobKeeper scheme
- Changing days or times of work under the JobKeeper scheme.