Businesses with turnover under $50m will benefit from a cash flow boost over a six month period as part of a Government business stimulus package. This package has been upgraded with the second tranche of government stimulus announced on 22 March 2020.
- Business with turnover under $50m
- Employ staff where PAYG tax is withheld from gross payments
- Lodge Activity Statements during the period 1 January 2020 to 30 June 2020
Form of cash flow boost
The government announcements are designed to help you cover the cost of employee wages. The stimulus package does this by allowing credit on 100% of Pay As You Go withheld over a six-month period.
The minimum amount your business would be able to receive over two quarters is $20,000, to a maximum of $100,000.
Timing of Activity Statement “credits”
On lodgement of the March and June quarter Business Activity Statements, the ATO will automatically apply a credit to the business in the amount of the PAYG tax withheld reduction.
For employers with monthly Activity Statement lodgements, the March 2020 credit will be calculated at three times the rate, to cover for the January and February months.
The ATO has advised that, where these credits end up with the business having a net refundable amount, these refunds will be paid within 14 days to a nominated bank account.
Please contact us to discuss the likely outcome of this measure for your business. We’re here to help you every step of the way.