Water West Pty Limited and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered a dispute between Water West Pty Limited and the Commissioner of Taxation regarding eligibility for JobKeeper payments. Water West Pty Limited sought to access the JobKeeper scheme, but the Commissioner determined it was ineligible. The core of the dispute revolved around whether Water West Pty Limited qualified as a small business entity for the relevant income year, specifically concerning its aggregate turnover.

The legal issues before the Tribunal were whether Water West Pty Limited was a small business entity, whether its aggregate turnover for the previous income year exceeded $10 million, and whether the aggregate turnover of related companies also exceeded $10 million for that year. These questions were critical to determining eligibility for the JobKeeper payments under the relevant legislative provisions.

The Tribunal reasoned that Water West Pty Limited could not satisfy the definition of a small business entity under section 328-110 of the Income Tax Assessment Act 1997. This was because the timing of its substituted accounting period, which had been aligned with its parent company, meant that the aggregate turnover of the broader BPIH group had to be considered. The Tribunal found that the group's turnover significantly exceeded the $10 million threshold. While acknowledging the laudable policy objectives behind the JobKeeper legislation and the applicant's expectations, the Tribunal emphasised that it and the Commissioner were bound to apply the law as written by Parliament, rather than rewriting it to achieve a desired policy outcome.

Consequently, the Tribunal affirmed the Commissioner's objection decision, finding Water West Pty Limited ineligible for JobKeeper payments.