Coronavirus (COVID-19) updates from the Australian Government

Cash flow to pay bills

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If your small or medium-sized business employs staff and has an aggregated annual turnover under $50 million, you may be eligible for two sets of cash flow boosts up to $100,000.

These payments are designed to help keep your business operating, pay rent, electricity and other bills and retain staff.

Small to medium-sized businesses, not-for-profit organisations, sole traders, partnerships, companies and trusts may be eligible if they had an ABN on 12 March 2020 and continue to operate.

The cash flow boost provides a tax free payment to employers and is automatically calculated by the ATO.

No new forms are required. Eligibility will generally be based on prior year turnover.

What’s available and when

The first boost will flow from 28 April 2020 and the second for the periods June to September will be delivered in instalments depending on reporting periods.

Eligible employers who withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $50,000.

Eligible employers who pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.

Case study

Sarah’s Construction Business

Sarah owns and runs a building business in South Australia and employs eight construction workers on average full-time weekly earnings, who each earn $89,730 per year. Sarah reports withholding of $15,008 for her employees on each of her monthly Business Activity Statements (BAS).

Under the Government’s changes, Sarah will be eligible to receive the payment on lodgement of her BAS. Sarah’s business receives:

  • A credit of $45,024 for the March period, equal to 300 per cent of her total withholding.
  • A credit of $4,976 for the April period, before she reaches the $50,000 cap.
  • No payment for the May period, as she has now reached the $50,000 cap.
  • An additional payment of $12,500 for the June period, equal to 25 per cent of her total Boosting Cash Flow for Employers payments.
  • An additional payment of $12,500 for the July period, equal to 25 per cent of her total Boosting Cash Flow for Employers payments.
  • An additional payment of $12,500 for the August period, equal to 25 per cent of her total Boosting Cash Flow for Employers payments.
  • An additional payment of $12,500 for the September period, equal to 25 per cent of her total Boosting Cash Flow for Employers payments.

Under the previously announced Boosting Cash Flow for Employers measure, Sarah’s business would have received a maximum payment of $25,000.

Under the Government’s enhanced Boosting Cash Flow for Employers measure, Sarah’s business will receive $100,000. This is an additional $75,000 to support her business and help her retain her staff.

Fact sheet

PDF file

See also