Boosting Cashflow for Employers Toolkit

Boosting Cashflow for Employeers

Legislation has been enacted to provide temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19 (novel coronavirus).

This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.

How can we help you?

Calculate your Cashflow Assistance eligibility

Through the Australian Taxation Office (ATO), 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.

Cash flow boost eligibility

  • Eligible small to medium-sized businesses will receive a cash boost of a minimum $2,000 up to a maximum of $25,000.  The payment will only be available to businesses with a turnover of less than $50m who employ staff between 1 January 2020 and 30 June 2020.  The payment will be tax free.  The Government has indicated the payments will be processed as a ‘refund’ of 50% their Business Activity Statement (‘BAS’) or Instalment Activity Statement (‘IAS’) from 28 April 2020.  We assume the 50% relates to PAYG withholding reported in the BAS/IAS, refunds will be processed within 14 days.  We also assume the cash boost, which is connected to the lodgement of the BAS or IAS will be refunded directly to employers and not offset against ATO liabilities.
  • Eligible employers can apply for a wage subsidy of 50% of their apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020.  Where small business is unable to retain an apprentice, the subsidy will be available to a new employer that employs the apprentice. 

Have a question about your eligibility to receive the Temporary Cash Flow Support program?

Please get in touch with your local RSM business expert  here >>.

Additional information from ATO: