Coronavirus (COVID-19) updates from the Australian Government

Boosting Cash Flow for Employers

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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 cash flow boost payments 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 tax free payments to employers and is automatically calculated by the ATO and delivered through the activity statement system.

What’s available and when

Eligible employers receive these boosts as credits upon lodging their activity statements for the March to September 2020 periods. Where this places an employer in a refund position, the Australian Taxation Office will generally deliver the refund within 14 days.

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