The Government is providing temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19 (novel coronavirus). This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.
Every second person seems to be confused with this cash flow boost and how it works so we will break down the key points for you below.
What is it?
Credit (not cash payment) in activity statement
Applied against current Activity Statement NOT against older debts
Implemented to support businesses with employees during COVID-19
How much is it?
TWO CASH FLOW BOOSTS:
Who is eligible?
Small/medium sized businesses <$55m turnover (use most recent year assessed OR commissioner can determine turnover is <$55m in 2019-20)
Makes eligible payment of wages subject to PAYGWH
Has ABN on 12 March 2020 (or registered by charity)
ACTIVE' --> by 12 March 2020 entity has;
When is it paid?
March Activity Statement (monthly lodgers get 3 x March PAYG WH)
April Activity Statement (monthly lodgers only)
May Activity Statement (monthly lodgers only)
June Activity Statement
How is it paid?
Simply lodge your Activity Statement and the credit should apply within 24 hours (call ATO if it does not as their system has flagged a few for further review)
Pay the balance of your Activity Statement by the due date or
Receive a refund ONLY if the boost exceeds your Activity Statement
Please contact us if you still have questions or if your cash flow boost does not apply within 24 hours of lodging your Activity Statement.
Founder & Director
Two Sides Accounting
02 9030 0269