An Update on the Coronavirus Cash Flow Assistance for Businesses

On the 23rd of March, the Federal Government’s Stimulus Packages to help the Australian economy withstand and recover from the economic impacts of COVID(19) was legislated through parliament. This includes the Cash Flow Assistance’s for Businesses package.

Boost Cash Flow

Eligible SMEs will receive a Boost Cash Flow for employers of up to $50,000 (with a minimum payment of $10,000). The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff between 1 January 2020 and 30 June 2020. The payment will be delivered by the ATO as an automatic credit upon lodgment and will be tax free.

Eligible businesses that withhold tax on their employees’ salary and wages will receive a payment equal to 100% of the amount withheld from the Australian Tax Office upon lodgment of their activity statements, up to a maximum of $50,000 in total.

For Businesses who lodge quarterly, they will receive assistance for their March 2020 and June 2020 Business Activity Statements (BAS).  For businesses who lodge monthly Installment Activity Statements (IAS) this period will include the months of March, April, May and June.

If your Wages Tax Withheld for the March quarter BAS was less than $10,000 you will receive a $10,000 credit in your March 2020 BAS or IAS.  If your wages tax withheld in the March quarter was between $10,000 & $50,000 you will receive a credit for the amount of your wages tax withheld.

The payment for monthly lodgers will be calculated at three times the rate (300 per cent) in the March 2020 activity statement.

Additional Payment

Businesses that continue to be active will also receive an additional payment following the lodgment of your June 2020 & September 2020 BAS or your June, July, August, and September 2020 IAS.

The additional payment will be delivered as an automatic credit in the activity statement.  For monthly lodgers this will equal to a quarter of your initial Boost Cash Flow payment. For Quarterly lodgers this will equal to half of your Boost Cash Flow payment (up to a total of $50,000).

This means that eligible businesses will receive at least $20,000 up to a total of $100,000 under both payments.

Notice of our current operation during COVID (19)

We would like to take this opportunity to let you know that we are here to support you through these uncertain times resulting from COVID(19).

Ensuring the health and safety of yourself and your loved ones is the utmost importance to us, as is ensuring that we continue to provide our clients with the ongoing service and support they require.

Our office is running business as usual for the time being, we continue to monitor directives from the various levels of Government and relevant health authorities to ensure we are keeping up with changes as they occur. If we are required to work remotely, we will only be a phone call or email away and we will remain ready to be able to assist you as and when required.

We want to ensure that you are financially, mentally and physically looked after during this time and in the near future. If you or your loved ones require any assistance please reach out.