As announced on 22 March, the government is providing up to $100,000 to eligible small and medium sized businesses and not-for-profits (including charities) that employ people, with a minimum payment of $20,000. These payments will help business and not-for-profit cash flow so they can keep operating, pay their bills and retain staff.
Eligible businesses are those SME’s with aggregated annual turnover under $50 million (generally the prior year turnover)
- The payment will be delivered by the ATO as a credit in the activity statement from 28 April 2020 when the business lodges its activity statement
- Eligible businesses that withhold tax on their employees’ salary and wages will receive a payment equal to 50 per cent of the amount withheld, up to a maximum payment of $25,000
- Eligible businesses that pay salary and wages will receive a minimum payment of $2,000 even where they are not required to withhold.
The Boosting Cash Flow for Employers payment will be applied to a limited number of activity statement lodgements. The ATO will deliver the payment as a credit to the entity upon lodgement of their activity statements. If this places the entity in a refund position, the ATO will deliver the refund within 14 days.
If you need assistance with preparing and lodging your upcoming March 2020 BAS, contact Rise Bookkeeping & Administration today to take advantage of the current stimulus package benefits.