Cash flow payment for employers

Eligible small businesses that withhold income tax from employee salaries and wages and pay it to the Australian Taxation Office can receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $50,000. A minimum payment of $10,000 may be available to businesses that pay wages but are not required to pay tax.

Who is eligible? Businesses with a turnover of less than $50 million that employ staff between 1 January 2020 and 30 June 2020.

When will it be received? Eligible businesses will automatically receive payments of up to 100 per cent of the amount withheld via their business activity statements (BAS) or instalment activity statement (for PAYG) from 28 April 2020, with refunds to be paid within 14 days after that date.

Eligibilty:

• Turnover less than $50 million
• Withholding tax from employees
• Business must have been established prior to 12 March 2020
• The business must be active.

Benefit:

• 100% of PAYGW for the period January to March 2020 will be rebated back to the employer up to a maximum of $50,000
• A minimum payment of $10,000 applies
• For the period April to October 2020 an additional payment equal half of the prior quarter benefit.

How:

• Businesses will receive the payment as an automatic credit from 28 April 2020, after lodging activity statements
• If the benefit exceeds the BAS obligation, the ATO will refund within 14 days
• There are different methods for monthly reporters but the benefit outcomes are the same
• Benefits are tax-free.

PAYG Withholding Benefits for Employers – Click here