Boosting cash flow for employers
Written on the 8 May 2020 by Arrow
An economic stimulus package is being put in place to support businesses to manage cash flow challenges and assist them retain their employees to continue to stay viable through the coronavirus crisis.
The Government is providing tax-free cash flow boosts between $20,000 and $100,000 to eligible businesses delivered through credits in the activity statement system when businesses lodge their statements.
Businesses do not need to apply, and the first amount will automatically be credited to the business' account from April 28.
Have an active ABN on March 12 2020, which continues to be active.
Have an aggregated turnover less than $50 million, based on the business' previous years turnover.
Made eligible payments that the business is required to (ie wages, directors fees, eligible termination or retirement payments, compensation payments or voluntary withholdings from payments to contractors).
Earned an assessable income from 2018-19 year or made sales in a previous tax period (since July 1 2018) and lodged the relevant activity statement on or before March 12 2020.
Not-for-profit organisations, sole traders, partnerships, companies and trusts (Not-for-profit organisations eligibility can be found here).
quarterly, it will be eligible to receive the credit for:
quarter 3, March 2020 (lodgment due date 28 April 2020)
quarter 4, June 2020 (lodgment due date 28 July 2020).
monthly, it will be eligible to receive the credit for the lodgment periods of:
March 2020 (lodgment due date 21 April 2020)
April 2020 (lodgment due date 21 May 2020)
May 2020 (lodgment due date 21 June 2020)
June 2020 (lodgment due date 21 July 2020)
Can you qualify for a refund?
If you have any questions in regards to the cash flow boosts your business is entitled to, please don't hesitate to give us a call.
Information in this article has been sourced from: https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/