What are the Government’s COVID-19 cash flow boosts for your business?


What are the Government’s COVID-19 cash flow boosts for your business?

The Australia Government has announced two cash flow boost to support business that employ staff during the COVID-19 economic downturn. The intention of these boosts is to support the employers to retain their staff.

cash flow boost for your business

What you need to know to boost your cash flow

Step 1 : How much can I get?

The tax-free boosts for employers range between $20,000 and $100,000.

Step 2 : What businesses are eligible?

Small and medium sized business entities (including companies, sole traders, partnerships, trusts, not-for-profit organisations) that

  • held an ABN on 12 March 2020 and are still active; and
  • have an aggregated annual turnover under $50m; and
  • made eligible payments including salary, wages, director fees, termination payments; and

either of the following

  • derived a business income in 2018-2019 and have lodged a tax return before 12 March 2020; or
  • made sales in a previous tax period and lodged relevant activity statement before 12 March 2020.
Step 3 : How do I get the cash flow boost?

You do not need to apply.

Employers must lodge a Business Activity Statement (BAS) from 28 April 2020, they will then automatically receive the cash-flow boost as credits through that system.

Step 4 : How is it calculated?

The initial boost is based on PAYG withholdings. Employers will receive a credit of 100% of the amount withheld up to a maximum of $50,000.

The additional boost will be equal to the first one received and spread over the June and September reporting periods.  Depending on whether you lodge your BAS quarterly or monthly will depend on the percentage of you receive for those reporting periods.

Step 5 : More information

For more information on this and other support options, go to the ATO website which is regularly updated as legislation is passed by the Government.

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