Phase two of the Federal Government stimulus package includes measures to boost cashflow for employers to help retain staff and keep operating. This applies to businesses and Not-for-profit entities.
On March 22, 2020 the Australian Government released Phase two of their assistance for business during the COVID-19.
This includes measures to boost cashflow for employers to help retain staff and keep operating. This includes businesses and Not-for-profit entities.
To be eligible you need to:
- Employ workers; and
- Have an aggregated annual turnover under $50 million.
Businesses need to be registered for PAYG Withheld before 12 March, 2020. Charities registered with the Australian Charities and Not-for-profits Commission are eligible regardless of when they registered.
Employers will receive a payment equal to 100% of their salary and wages withheld with a minimum repayment of $10,000 and a maximum payment of $50,000. The minimum amount will be received even if the employer is not required to withhold any tax.
The payment will be delivered as an automatic credit from 28 April 2020 upon lodgement of the March 2020 BAS. There will be subsequent payments for Monthly BAS lodgers up to the $50,000 maximum.
Additional payments will be available in the July – September quarter, bringing the amount to be received in total to a minimum of $20,000 and a maximum of $100,000.
If the credit to the Activity Statement results in a refund the refund will be delivered in 14 days.
All amounts received are tax free.
By Karen Bollinger – YBMYates Baker McLean. Accountants and Business Advisors situated in the Central West of NSW. Offering comprehensive advice for all your financial needs including tax, auditing, business advisory, self managed super funds, specialised industry experience and financial planning.