The Government has announced a second package of measures to help with business cash flow. This package is significantly larger than the previous package but again has been designed to assist all businesses rather than targeting those most in need.
The main element of the package is again a PAYG Withholding rebate. The rebate applies to small businesses with less than $50m turnover and will now also apply to not for profit organisations. The rebate has now been increased from 50% of PAYG Withholding to 100% of PAYG Withholding for reporting periods ending March 2020 to June 2020. Another element has been added which effectively quadruples the previously announced measure. For any employer who was eligible in March to June, they will receive another payment for the same amount when lodging their BAS's for periods ending between June 2020 and September 2020.
The minimum payment will be $20,000 and the maximum payment will be $100,000. If your PAYG Withholding for the March to June period is less than $10,000 you will receive the minimum payment of $20,000. Therefore many businesses who are forced to shut down will only be eligible for the minimum payment.
Importantly this rebate only applies to businesses that were active eligible employers prior to the 12th of March 2020. Charities are eligible regardless of when they were registered. An active employer is one who had a registered ABN as at 12 March 2020 and who has already reported at least one sale between 1 July 2018 and 12 March 2020.
There are integrity provisions to ensure that if the sole or dominant purpose for paying PAYG Withholding was to obtain or increase the rebate, then that entity would not be eligible for any rebate that period.
The first credit should be applied on the 28th of April if your March BAS has been lodged. This will be for at least a minimum amount of $10,000.
For more information on how to help your business survive the Coronavirus read our article here