Our summary of the government assistance packages due to the COVID 19 outbreak
Cash Flow Boost for Employers
<Updated 27 March 2020>
(This package replaces the previous announcement on 12 March 2020 where payments of up to $25,000 were proposed)
Employers will receive a payment of $20,000 ~ $100,000 equal to the minimum amount or 100% of the PAYG withholding tax withheld on salary and wages over 2 stages commencing with a:
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minimum amount of $10,000 x 2 stages (where the tax withheld on salary and wages are less than $10,000)
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maximum amount of $50,000 x 2 stages
To qualify for this scheme,
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Employers’ aggregated annual turnover must be under $50 million (generally based on prior year turnover)
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The payments will only be available to active eligible employers established prior to 12 March 2020.
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The entity must continue to be active
Unfortunately, this scheme does not apply to the owner’s drawing & profit components for sole traders and partnerships.
The tax free “cashback” will be delivered as a credit amount upon lodging the activity statements including the salary and wages for that period. Where the activity statement results in a refund position, the ATO will deliver the refund within 14 days.
There will be two components to how the government grant will be provided.
| 1st Boost
Employers will receive between $10,000 to $50,000 as financial support for the PAYG withholding tax on wages and salary from the lodgement of the activity statement. The assistance will cover the following periods.
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Jan ~ Mar 2020 quarter
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Apr ~ Jun 2020 quarter
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For monthly lodgers (Mar, Apr, May and Jun 2020 lodgements, with a 300% in the March period to provide the same treatment as quarterly lodgers)
| 2nd Boost
An additional payment equal to the total payment received during 1st stage and will be applicable for the following periods.
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Jul ~ Sep 2020 quarter
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For monthly lodgers will be released once the Jul, Aug & Sep 2020 are lodge
Disclaimer:
Information based on facts we have summarised to the above updated date. We have not considered your personal circumstances and should you wish to consider it, please seek professional advice.