The Government will provide tax-free cash flow boosts of between $20,000 and $100,000 to eligible businesses, delivered through credits in the activity statement system, when eligible businesses lodge their activity statements.

Eligible businesses do not need to apply with a separate form. Upon lodgment of their activity statement, the first amount will automatically be credited to the business’ account, from 28 Apr 2020.

The cash flow boosts will be applied to reduce liabilities arising from the same activity statement. This will result in eligible entities being required to pay less to the ATO. Generally where a credit exceeds a business’ other tax liabilities, the business will be refunded the excess amount within 14 days.

Eligible businesses

  • held an ABN on 12 March 2020 and continues to be active;
  • has an aggregated annual turnover under $50 million (generally based on prior year turnover); and
  • made eligible payments that the business is required to withhold from (even if the amount required to be withheld is zero).

Eligible payments include:
– salary and wages
– director fees
– eligible retirement or termination payments
– compensation payments
– voluntary withholding from payments to contractors.

In addition, the business must also have either:

  • derived business income in the 2018–19 income year and lodged its 2019 tax return on or before 12 March 2020; or
  • made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020.

in the absence of any income tax assessments for prior years, businesses may still be eligible if the Australian Taxation Office (ATO) can use other information it holds on the business to determine that it is a business and would have an aggregated annual turnover under $50 million.

Initial cash flow boost

The initial cash flow boost is based on the amount of a business’ PAYG withholding.

Eligible businesses that withhold tax on their employees’ salary and wages will receive a credit equal to 100% of the amount withheld, up to a maximum of $50,000. The minimum credit will be $10,000, even if the amount required to be withheld is zero.

Additional cash flow boost

All eligible entities that received initial cash flow boosts may be entitled to additional cash flow boosts

The amount of additional cash flow boosts that a business is entitled to is based on the value of initial cash flow boosts the business received.

*please refer to our roadmap for estimated boost amount you may receive.