Posted by | The government is providing cash flow boosts to eligible businesses, delivered through CREDITS in the activity statement system, when businesses lodge their activity statements. This will be between $20,000 and $100,000 for eligible businesses. |
In summary:
- The initial payment will be delivered by the Australian Taxation Office (ATO) as a credit in the activity statement system starting from 28 April 2020
- Employers that withhold tax to the ATO on their employees’ salary and wages quarterly will receive a payment equal to 100 per cent of the amount withheld (monthly withholders 300% credit), up to a maximum payment of $50,000
- Eligible businesses that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax
- An additional payment equivalent to the total of the initial of cash boost credits that would have been received will be available if the business continues to be active
- The additional payment will be delivered as credits in the June and September BAS’s for quarterly lodgers and June, July, August & September for monthly lodgers
- Small and medium business entities with aggregated annual turnover under $50 million and who employ workers will be eligible (based on the prior year’s turnover)
Eligibility
- You are a small or medium business entity or NFP of equivalent size (that is, an entity with aggregated annual turnover less than $50 million).
- You held an ABN on 12 March 2020.
- You made payments to employees subject to withholding (even if the amount you withheld is zero), such as salary and wages, director fees, eligible retirement or termination payments, compensation payments voluntary withholding from payments to contractors.
- You have lodged, on or before 12 March 2020, at least one of a 2018–19 income tax return showing that you had an amount included in your assessable income in relation to you carrying on a business or an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that you made a taxable, GST-free or input-taxed sale.
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This information is intended to provide general information only and has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information
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