As you may be aware the Government is assisting businesses during the Covid-19 shutdown.

Boosting cash flow for employers

If you are employing staff and need to withhold tax then the amount of tax withheld will still need to be reported to the ATO on your BAS, the ATO will credit that amount to your account. 

If your PAYG Withheld (W2 Figure on your BAS) is less than $10,000 for the March quarter then your initial cashflow boost will be $10,000. If the W2 is greater than $10,000 then your initial cashflow boost will the W2 amount up to $50,000.

You will receive additional cash flow boosts for the quarters ending 30th June 2020 and 30th Sept 2020 of 50% of your initial boost. ie June $5000 and Sept $5000

The cashflow boosts are tax free and not required to be repaid (unless and “overpayment” has been made).

JobKeeper payment – Employer

The Jobkeeper Payment of $1500 per fortnight is paid by the employer to an employee. The business will need to show that a 30% fall in their turnover has occurred to be eligible for this payment

If an employees income is greater than $1500 per fortnight only $1500 will be received by the employer and the employer will need to make up the difference in the wage.

If the employee’s income was normally below the $1500 per fortnight then the employer would receive $1500 and is required to pass the full $1500 per fortnight on to the employee.

Superannuation still needs to be paid on ordinary time earnings.

JobKeeper payment – Sole Trader

If your business turnover has fallen by more than 30% compared to a typical month in 2019 you can apply for the JobKeeper Payment of $1500 per fortnight.

Registration of Interest

The link below is for registering your interest in the Jobkeeper payment, the full registration for the payment will happen later. To register your interest, you will need your business name, ABN, contact name email address and mobile number.

https://www.ato.gov.au/general/gen/JobKeeper-payment/

The ATO will send updates as more details of the payments are finalised.

Disclaimer

The information provided has relied on information on current Gov’t websites, The proposed legislation has not been passed for the changes so it may vary from the information provided.

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