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James Millar
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bb1, post: 269522, member: 53375 wrote:
James I am normally one to read the legislation (it’s a concern), but to save me the hassle, what is the definition of substantial in the case of number 4.

Excellent question Bert. Extracted here however I’m getting my head around the calculation for the increase of 50%. Not entirely clear what the elements of that “increase calculation” are.

9. Business had substantial increase in turnover

(1) An entity applies the alternative test under this section if the entity had an increase in turnover of:

(a) 50% or more in the 12 months immediately before the applicable turnover test period, or

(b) 25% or more in the 6 months immediately before the applicable turnover test period, or

(c) 12.5% or more in the 3 months immediately before the applicable turnover test period.

(2) The alternative test is:

(a) if the relevant comparison period is a calendar month, the entity divides the 3 months’ current GST turnover by 3 and uses that figure instead of the entity’s current GST turnover in section 8 of the Rules, or

(b) if the relevant comparison period is a quarter, the entity uses the 3 months’ current GST turnover instead of the entity’s current GST turnover in section 8 of the Rules.

(3) The 3 month’s current GST turnover is the total current GST turnover in the 3 months immediately before the applicable turnover test period.

(4) For the purposes of subsection (3), if the entity:

(a) qualified for the ATO’s Bushfires 2019–2020 lodgment and payment deferrals, use the 3-month period before the Bushfires 2019–2020 lodgment and payment deferrals commenced to calculate the 3 months’ turnover, or

(b) received Drought Help concessions, use the 3 month period before this concession commenced to calculate the 3 months’ turnover.

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