COVID-19 Small Business Measures Up-sized
22 March, 2020 / In Announcements / By Chris Burnett
10 days ago the Government announced its $17.6 billion economic plan to deal with the challenges small businesses will face in the coming months.
Today they up-sized the measures and expanded them further – to the tune of $189 billion! These measures will be put into Bills and introduced into Parliament on 23 March – so we will update you will any policy details then but here are the main points on the small business cash flow boost payment released by Government today.
Cash flow boost goes from $25,000 to $100,000.
Under the Government’s enhanced stimulus package, eligible employers will now get a payment equal to 100% (previously this was 50%) of the tax withheld from their employees wages for the period 1 January 2020 to 30 June 2020 up to a limit of $50,000 (previously this was $25,000).
The minimum an employer will receive has also increased from $2,000 to $10,000.
Businesses will receive the payment from the ATO within 14 days of the lodgement of their March 2020 BAS/IAS.
Businesses that are registered to pay its PAYG Withholding on a monthly basis will get three times the tax withheld in the month of March to allow for the already lodged months of January and February 2020.
It is likely that the Government will introduce integrity measures that only small businesses that were active employers as at 12 March 2020 will be eligible for the payment.
There will also be an additional payment for eligible employers up to an equal amount made under payment 1.
The timing of the payment will depend on if the business is registered to pay its PAYG Withholding tax quarterly or monthly.
If a business is registered quarterly it will receive 50% of the amount received under payment 1 when it lodges its June 2020 BAS and then the other 50% when it lodges its September 2020 BAS.
If a business is registered on a monthly basis it will receive 25% of the amount received under payment 1 when it lodges each of its BAS’/IAS’ for the months of June, July, August & September.
Want help to calculate what to expect under this measure?
If you want to discuss what you might expect under this measure then get in contact with me. I have put a link here so that you can book in an online zoom meeting with me directly into my calendar.