Boosting Cash Flow for Employers

As you would all be aware the Australian Government has announced measures to help the economy withstand and recover from the economic impact of COVID-19 (coronavirus) and below is a summary of the measures being administered by the Australian Taxation Office to boost cash flow for employers.

Eligible businesses will receive up to $100,000 payment in total based on their PAYG withholding

To be eligible they must have been registered for PAYG with the ATO at 12 March 2020

Employers will receive an initial payment equal to 100% of their salary and wages withheld with a:

  • Minimum payment of $10,000
  • Maximum payment of $50,000

Employers will then receive an additional payment equal to 100% of their initial payment, therefore total payments will be:

  • Minimum payment of $20,000
  • Maximum payment of $100,000

Employers will receive the eligible payments within 14 days of the due date of each relevant activity statement

All eligible employers will receive at least $10,000 for the first eligible period irrespective of their withholding amount

  • Quarter 3 (Jan-Mar 2020) for quarterly instalments
  • March 2020 for monthly instalments

The payments will be a credit to the entity’s ATO account:

  • It will firstly reduce the amount owing to the ATO.
  • Any remaining payment will be refunded within 14 days of lodgement due date

Eligible business do not need to keep employing/lodging PAYG from July 2020 onwards to receive the additional payment but they must continue to lodge activity statements