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Posted: 2020-03-31 13:00:00

"The ATO will provide guidance to help businesses self-assess their eligibility, including for recently established businesses," the spokesperson said. "Businesses will need to be able to substantiate their claim that their turnover has declined, and this may not be possible for businesses just established."

Co-founders of Brandollo Brian McCarthy and Marco Muscat (R).

Co-founders of Brandollo Brian McCarthy and Marco Muscat (R).

Mr Bassat said the government's measures go a long way to helping eligible startups survive the next few months, but Australia would also have to consider targeted support for the sector, such as potential grants or research and development incentives, once the country entered recovery mode.

"We are going to need to create jobs in this country like we’ve never done before," he said.

A flood of questions have been directed to the ATO's social media this week, questioning how businesses that have been in existence less than 12 months or are pre-revenue can access support.

Early stage companies from across a range of sectors have told The Sydney Morning Herald and The Age their plans to hire staff in 2020 have been completely shattered regardless of stimulus measures. Others worried because they were pre-revenue, or were still posting revenue growth that was now uncertain because of wider shutdowns, they wouldn't qualify.

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"The thing that's trickiest is the 30 per cent drop in turnover. If your turnover was $0 six months ago and now you're earning a little bit of revenue, you don't qualify," said co-founder of software platform Brandollo, Brian McCarthy.

Brandollo helps consultants and trainers deliver services online and Mr McCarthy is optimistic that the business can be sustained throughout the coronavirus shutdown period. However, he doesn't believe Brandollo would be able to access JobKeeper if it needed to because, despite the extreme volatility, it has started to post first revenues this year.

Mr McCarthy said his number one priority right now was to keep the existing team together rather than taking on new projects.

Other pre-revenue businesses are also worried about their growth prospects, despite the stimulus measures.

Melbourne startup JigSpace, which offers tools for building 3D visual presentations, has only just started posting revenue but has seen its entire hiring plan for 2020 halted.

"We were going to hire in several roles around that over the next 12 months, but those plans will have to be put on hold," co-founder Zac Duff said.

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