If you are one of almost 700,000 small to medium-sized businesses or charities that employs people, you might be eligible for a staged payment of between $20,000 and $100,000 to help your business with the cash flow during the Coronavirus crisis.
Businesses and not-for-profits with a turnover of under $50 million per year can qualify for this assistance.
If your business withholds tax on your employees’ wages (those employed prior to 12 March 2020), you will receive a payment equal to 100 per cent of the amount withheld (between the minimum of $10,000 and up to the maximum of $50,000). If you are not withholding tax, you will receive the minimum payment.
If your business continues to operate into the next financial year, you might be eligible for an additional payment. As the Federal Government explains:
For monthly activity statement lodgers, your additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of your total initial Boosting Cash Flow for Employers payment following the lodgment of your June 2020, July 2020, August 2020 and September 2020 activity statements (up to a total of $50,000).
For quarterly activity statement lodgers, the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to half of your total initial Boosting Cash Flow for Employers payment following the lodgment of your June 2020 and September 2020 activity statements (up to a total of $50,000).
The payment will be delivered as a credit in the activity statement system from 28 April 2020 after you lodge your upcoming monthly or quarterly activity statements.
Your payment will be automatically calculated by the Australian Taxation Office and if eligible, you will receive it within 14 days of lodging your activity statement.
Please contact the ATO for more information.
The above information does not constitute legal or financial advice – please speak to your accountant and other specialist advisers about your specific circumstances and what’s best for your business.
And as always, we are free to talk to you about any of this.
We are all in this together.