Document ID: chunk:federal_register_of_legislation:F2020C00965:body:0:p3
Version: federal_register_of_legislation:F2020C00965
Segment Type: other
Provision Reference: 
Character Range: 5404–8255

persons, a trust, a superannuation fund, and approved deposit fund.

    Relevant comparison period has the same meaning as in the Rules.

    Small partnership is a partnership as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997 with four or fewer individual partners.

    Turnover test period has the same meaning as in the Rules.

Alternative decline in turnover tests

  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