An economic stimulus package is being put in place to support businesses to manage cash flow challenges and assist them retain their employees to continue to stay viable through the coronavirus crisis.
The Government is providing tax-free cash flow boosts between $20,000 and $100,000 to eligible businesses delivered through credits in the activity statement system when businesses lodge their statements. Businesses do not need to apply, and the first amount will automatically be credited to the business’ account from 28 April.
When will you see your cash flow boost?
If the business lodges:
Note: if the businesses has been granted a deferral from the ATO, the cash flow boost will generally be made at the time of the deferral lodgement.
Eligible businesses who received the initial cash flow boost will receive an additional cash flow boost, for the periods June to September 2020, equal to the amount of initial cash flow boost received.
Can you qualify for a refund?
A business may receive a refund where the credit exceeds the business’ other tax liabilities or if it has overpaid its activity statement. If your business is in the position to receive a refund, you will generally receive the refund within 14 days.
If you have any questions in regards to the cash flow boosts your business is entitled to, please don’t hesitate to give us a call.
Information in this article has been sourced from: https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/