What We Know About the ATO Cash Boost
This purpose of this article is to summarise what we know about the basics of the tax-free Cash Boost
Do I qualify? Yes, you do if:
If you are an employer from March through to September 2020,
Have turnover less than $50m
Have an ABN at 12 March 2020 and
Make supplies for GST purposes (could be taxable or GST-free)
You have advised the ATO of your PAYG Withholding amount for the month of March, or the quarter ended 31 March
What do I need to do? You only need to lodge your March BAS, whether quarterly or monthly.
Can I deduct the Cash Boosts from my BAS’s liability? Strictly speaking, you can’t, but it seems clear that the ATO won’t take action if you do
Minimum Cash Boost: The minimum for each of the two Cash Boosts are $10,000 or in total, $20,000
Maximum Cash Boost: The maximum for each of the two Cash Boosts are $50,000 or in total, $100,00
First Cash Boost timing-first credits are expected to post 28 April 2020:
March, April, May and June If you lodge monthly BASs, or
Quarters ended 31 March and 30 June 2020 if you lodge quarterly BAS’s.
Second Cash Boost timing:
June, July, August and September if you lodge BASs monthly, or
Quarters ended 30 June and 30 September for quarterly BAS lodgers.
First Cash Boost $ payouts
Monthly lodgers: March Greater of $10,000 or 3 x PAYG withheld for March, then in April, May and June, actual PAYG remitted, subject to cap of $50,000
Quarterly Lodgers:
a. March: Greater of $10,000 or actual PAYG tax withheld for the March quarter, and
b. June: they will receive the PAYG withheld for the June quarter, subject to $50k cap on a+b
Second Cash Boost $ payouts
Monthly Lodgers: for each of June, July August and September 25% of the total of the first Cash Boost
Quarterly Lodgers: for each of June and September, 50% of the first Cash Boost, subject to $50k cap.
We hope that the information above has been helpful. Please don’t hesitate to contact us if you need any further information