Cash flow boost payments – Explained Simply

 

Employers with aggregated annual turnover under $50 million
Cash flow boost payments

‘Boosting Cash Flow for Employers’ payments of up to $100,000 (with a minimum total payment of $20,000) will be provided to eligible SMEs and NFPs that employ workers.

The payments will be made in two tranches, the initial cash flow boost from April to July 2020 and the additional cash flow boost from July to October 2020, with a maximum of $50,000 and minimum of $10,000 paid in each tranche.

The cash flow boost is generally based on the amount of PAYG withholding during the relevant periods.

 

 

The payment will be provided on the following dates or when business activity statements are lodged if a later date:

Quarterly lodgers –

  • 28 April 2020 (first initial boost payment
  • 28 July 2020 (two payments: final initial and first additional)
  • 28 October 2020 (final additional payment)

Monthly lodgers –

  • 21 April 2020,
  • 21 May 2020
  • 21 June 2020,
  • 21 July (two payments, last initial and first additional)
  • 21 August 2020
  • 21 September 2020
  • 21 October 2020.

 

The ATO will apply the cash flow boosts automatically as per the column on the left.

The minimum total credit per tranche will be $10,000, even if the amount required to be withheld is zero.

Quarterly lodgers will receive their initial cash flow boosts in two payments based on the total amounts withheld for each of the March and June 2020 quarterly activity statement (up to $50,000). The additional cash flow boost for quarterly lodgers will be the amount of the total initial cash flow boost and will be paid in two equal payments in relation to their June and September 2020 quarterly activity statements.

Monthly lodgers’ first payment of the initial cash flow boost will be calculated at three times the monthly PAYG Withholding in the March 2020 monthly activity statement up to $50,000 (this is to align with quarterly lodgers payments – any balance below $50,000 will be paid over the rest of the monthly activity statements up to June 2020).

The additional cash flow boost for monthly lodgers will be paid at the rate of 25% of their total initial cash flow boost amounts for each monthly activity statement from June to September 2020.

The cash flow boost payments are tax-free. Employers should ensure the gross PAYG withholding liability is expensed in their accounts to ensure the tax-free status is recognised in their tax returns.

Book an appointment, if you need help doing your bas return, single touch payroll or need COVID grant payments advice.

Related COVID-19 info

JobKeeper Payment info

South Australian $10k cash grants for businesses impacted by COVID-19