7. Business commenced7. Business commenced

7. Business commenced

(1) An entity applies either of the alternative tests under this section if the entity commenced business after the first day of the relevant comparison period and before 1 March 2020.

(2) The first 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 the entity commenced business before 1 February 2020, the sum of the entity’s current GST turnover for each whole month after the entity commenced business and before 1 March 2020 divided by the number of whole months, or

(b) if the entity started business before 1 March 2020, but on or after 1 February 2020, the entity’s current GST turnover before 1 March 2020, divided by the number of days the entity was in business and multiplied by 29.

(4) The second alternative test is:

the entity uses the 3 months’ current GST turnover 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.

(5) The 3 months’ current GST turnover is the total of the current GST turnover in the 3 months immediately before 1 March 2020.

(6) The second alternative test in subsection (4) and paragraph (7)(b) is not available if the entity had not commenced business at least 3 months before 1 March 2020.

(7) If the relevant comparison period is a calendar month:

(a) for the first alternative test, 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; and

(b) for the second alternative test, the entity divides the 3 months’ current GST turnover by 3 and uses that figure 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).

(8) For the purposes of subsections (3), and (5), 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 those are the only months since the entity commenced the business, or

(b) received Drought Help concessions, then the entity may exclude the months covered by the Drought Help concessions from the calculation, unless those are the only months since the entity commenced the business.