CASH FLOW BOOST FOR EMPLOYERS WHO WITHHOLD SALARY AND WAGES
SUMMARY
Up to $100,000 payment to small businesses who withhold salary and wages.
POLICY
Employers with an aggregated annual turnover of under $50 million (based on prior year turnover) will receive payments of between $20,000 to $100,000 from the government to help with cash flow. This package replaces the cash flow boost for employers announced on 12 March 2020 where payments of up to $25,000 were announced.
There will be two components to the payment. The first stage will be for the March and June quarters. Employers will receive a payment equal to 100 per cent of the taxes withheld on salary and wages, with the maximum payment being $50,000. Where an employer (both for profit businesses and not-for-profits) is not required to withhold any tax on salary and wages, the minimum payment at this stage will be $10,000. The second stage will be for the July to September quarter. Eligible entities will receive an additional payment equal to the total payment received under the first stage. This means that eligible entities will receive anywhere between $20,000 to $100,000 in payments from the government
The payment will be delivered as a credit in the activity statement system from 28 April 2020 upon businesses lodging their activity statements. Where this puts the business in a refund position, the ATO will deliver the refund within 14 days.
The payments will only be available to active eligible employers established prior to 12 March 2020. However, charities which are registered with the Australian Charities and Not-for-profits Commission (ACNC) will be eligible regardless of when they were registered. To qualify for the additional payment, the entity must continue to be active.
MORE INFORMATION
Refer to the Treasury website page for more information and worked examples.
HOW TO APPLY
There is no application process. This will automatically be paid when you submit monthly or quarterly activity statements.