COVID-19 Stimulus Package – Boosting Cash Flow Employer Payments

The Government is providing up to $100,000 to eligible small and medium sizes business, and not-for-profits that employ people, with a minimum payment of $20,000.

On 12 March 2020, the government announced the Boosting Cash Flow for Employer's measure. The measure initially provided up to $25,000 to business, with a minimum payment of $2,000 for eligible businesses.

The government has now enhanced this measure as of the 22nd of March 2020 as part of the second economic response package. Under the enhanced scheme, employers will receive a payment equal to their PAYG withheld on employees' wages, with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000.

Above all this, an additional payment is also being introduced in the July to October 2020 period. Eligible entities will receive an addition payment equal to the total of all the boosting cash flow for employer payments they have received.

Eligibility – Boosting Cash Flow for Employer payments

Small and medium sized business entities and not for profit organisations with aggregated annual turnover under $50 million and that employ workers will be eligible.

  • The payment will be delivered by the ATO as an automatic credit in the activity statement system from 28 April 2020
  • Eligible employers that withhold tax to the ATO on their employees salary and wages will receive a payment equal to the amount withheld, up to a maximum payment of $50,000
  • Eligible employers that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax
  • The payments will only be available to active eligible employers established prior to 12 March 2020.

Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020. Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgements.

To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (300 per cent) in the March 2020 activity statement. The minimum payment will be applied to the entities' first lodgement.

Eligibility – Additional payment

To qualify for the additional payment, the entity must continue to be active.

For monthly activity statement lodgers, the payment will be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of their total initial Boosting Cash Flow for Employers payment following the lodgement of their June 2020 , July 2020, August 2020 and September 2020 activity statements (up to a total of $50,000)

For quarterly activity statement lodgers, the payment will be delivered as an automatic credit in the activity statement system. This will be equal to half of their total initial Boosting Cash Flow for Employers payment following the lodgement of their June 2020 and September 2020 activity statements (up to a total of $50,000)

If you require further information on any of the above, wish to check if your eligible or need assistance lodging your activity statements to ensure you receive the credits, please call our office on (03) 5032 9422. As the situation changes we will continue to relay the information to our clients and community.

For more general information please follow the link to the Treasury Fact Sheet