12. Business has an irregular turnover12. Business has an irregular turnover

12. Business has an irregular turnover

(1) An entity applies the alternative test under this section if:

(a) for the consecutive 3‑month periods ending in the 12 months immediately before:

(i) the applicable turnover test period; or

(ii) 1 March 2020,

the lowest of the entity’s current GST turnover for any of those 3-month periods is no more than 50% of the highest of the entity’s current GST turnover for any other of those 3-month periods, and

(b) the entity’s current GST turnover is not cyclical.

(2) The alternative test is:

the entity multiplies the average monthly current GST turnover by three and uses that figure instead of the entity’s current GST turnover for a relevant comparison period, that is a quarter, for the purposes of section 8, section 8A and section 8B of the Rules.

(3) The average monthly current GST turnover is:

(a) if subparagraph (1)(a)(i) applies, the sum of the entity’s current GST turnover for each whole month in the 12 months immediately before the applicable turnover test period divided by 12, or

(b) if subparagraph (1)(a)(ii) applies, the sum of the entity’s current GST turnover for each whole month in the 12 months immediately before 1 March 2020 divided by 12.

(4) If the relevant comparison period is a calendar month, the entity uses the average monthly current GST turnover instead of the entity’s current GST turnover for a relevant comparison period for the purposes of section 8 and section 8A of the Rules.

Note: This subsection is only applicable for the decline in turnover test under section 8 of the Rules including section 8A of the Rules (if applicable).

(5) For the purposes of subsections (2), (3) and (4), if the entity:

(a) qualified for the ATO’s Bushfires 2019–20 lodgment and payment deferrals, then the entity may exclude the calendar months covered by the Bushfires 2019–20 lodgment and payment deferrals from the calculation, unless the months covered by the concession are the only months available, or

(b) received Drought Help concessions, then the entity may exclude the months covered by the Drought Help concessions from the calculation, unless the months covered by the concession are the only months available.