The Boosting Cash Flow for Employers measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff…and the payment will be tax free!
Businesses that report PAYG Withholding (PAYGW) quarterly will receive 50% of PAYGW reported in their March 2020 and June 2020, up to a cap of $25,000.00.
Businesses that report PAYGW monthly will receive, up to a maximum of $25,000.00, support payments as follows:
- 150% of March 2020 PAYGW (that is: March PAYGW x 3 @ 50%); plus
- 50% of April 2020 PAYGW; plus
- 50% of May 2020 PAYGW; plus
- 50% of June 2020 PAYG
Note: 150% for March makes it equivalent to 50% of PAYGW for 6 months
Quarterly PAYGW Activity Statement reporting:
- Let’s say your quarterly PAYGW for March and June quarterly BASs is $5,000. The Fact Sheet indicates your business will receive 50% of $10,000, or $5,000
Monthly PAYGW Activity Statement reporting:
- Let’s say PAYGW for March included in your Jan-March BAS is $3,000 and your PAYGW reported in April, May and June Activity Statements is $3,000 for each month. The Fact Sheet indicates your business will receive 50% of $18,000, or $9,000; made-up as follows:
- March 2020 $4,500 (150% of March)
- April 2020 $1,500 (50% of April)
- May 2020 $1,500 (50% of May)
- June 2020 $1,500 (50% of June)
NOTE: If you employ people and you do not withhold tax (i.e. you report Gross Wages paid to employees in the Activity Statement process, yet there is no tax withheld because your employee’s wages are below the tax-free threshold), then the Fact Sheet your business will receive a $2,000 support payment in March.
For those clients employing Apprentices and/or Trainees there are additional support measures available; these are described on Pages 3 and 4 of the attachment.