Working out your GST turnover - old EA

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DRAFT TOPIC - DO NOT DISTRIBUTE

To be eligible for JobKeeper payments, your business needs to show a fall in GST turnover compared to the same period a year ago.

The required fall in GST turnover is:

30% for an aggregated turnover of $1 billion or less
50% for an aggregated turnover of more than $1 billion
15% for ACNC-registered charities other than universities and schools

You only need to satisfy the fall in turnover test once. You don't need to test your turnover in the following months or quarters.

For all the details on JobKeeper eligibility for businesses, visit the ATO website.

Working out a change in GST turnover

Use the GST report for activity statement in MYOB Essentials to compare your quarterly GST on sales with the same period a year ago. You can then use the calculator in the Single Touch Payroll reporting centre to help work out the change in your GST turnover. You'll need to generate your reports to match your accounting basis (cash or accrual).

This is a basic GST turnover test which might not suit all businesses. For example, you might choose to use the Profit & loss report to determine any change in turnover. If our suggestion below doesn't suit your needs, check with your accounting advisor or see the information on the ATO website about GST turnover tests.

To work out a change in GST turnover

First we'll obtain your GST turnover values for a period in 2020 and the equivalent period in 2019.

In MYOB, go to the Reports menu and choose All reports.
Click to open the GST report for activity statement.
In the Choose Report field, choose GST Report (Summary).
For the date range, choose the July - September 2020 quarter.
If your business operates on a cash accounting basis, select the Cash basis option. If this option is deselected the report will generate for an accrual basis. Here's our example:
Click Generate report. The report displays GST inclusive values for your sales.
Work out the GST exclusive value of G1, like this:
- Output Value - GST Collected = G1 (GST exclusive)
- In our 2020 example below this is $9372.35 - $852.03 = $8520.32
If displayed, take note of the Output Value for G3. These are your GST free sales for the report period. You might want to save or print this report for your records. Here's our example for July - September 2020:
Generate the report again for the same period in 2019 to obtain the comparison values.
Again, work out the GST exclusive value of G1:
- Output Value - GST Collected = G1 (GST exclusive)
- In our 2019 example below this is $137,789.31 - $12,526.30 = $125,263.01
If displayed, take note of the Output Value for G3. These are your GST free sales for the report period. You might want to also save or print this report for your records. Here's our example for July - September 2019:

Now we'll use these values to determine your change in GST turnover using the calculator in the Payroll reporting centre.

Go to the Payroll menu and choose Single Touch Payroll reporting.
Click the JobKeeper eligibility tab.
Enter the GST values from the reports you generated earlier for 2019 and 2020.
- Enter the G1 (GST exclusive value) in the GST Exclusive Sales ($) fields.
- Enter the G3 values in the GST Free Sales fields.
Any decline in GST turnover will be shown. Here's our example:

Any decline shown does not determine your JobKeeper eligibility. It's just a calculated value based on the numbers you entered. If you're unsure of your JobKeeper eligibility, check with your accounting advisor or the ATO.

What's next?

If you believe your business is eligible for JobKeeper payments, visit the ATO website to learn about enrolling for JobKeeper. Once you're enrolled, find out how to get set up and make JobKeeper payments in MYOB Essentials.

FAQs

What if I'm not registered for GST?

If you're not registered for GST, you can use your business records that show when you received payments for your sales or when you issued invoices to work out your current GST turnover.

Check the ATO website to learn more about the decline in turnover tests.

Are sole traders eligible for JobKeeper?

Sole traders (with no employees) may be eligible to receive JobKeeper payments if their business has experienced a downturn according to the ATO’s eligibility criteria.

If you’re eligible, there’s no need to set yourself up as an employee in AccountRight – just enrol directly with the ATO.

When you receive JobKeeper payments from the government, you'll need to record these as receive money transactions, ideally into a dedicated income account. For more details see COVID-19 wage subsidy (JobKeeper) payments.