COVID – 19 Stimulus – Cash Boost to Small to Medium Businesses

The interruption caused by COVID – 19 is devastating. The Government released the second, far reaching $66.1b stimulus package for all areas of the economy. We focus on the Cash Boost provided to small to medium businesses here.

Cash Boost is tax-free cash supports for employers.

Eligibility

Employers will be eligible for the subsidy if:

• Business aggregated turnover of less than $50 million based on prior year turnover.
• Business established prior to 12 March 2020.
• Not-for-profit employers with an aggregated turnover under $50 million are also eligible, including new charities established in response to the pandemic.

Amounts

• Minimum amounts $10,000 in Phase 1 & 2 each, total $20,000 in two phases.
• Maximum amounts $50,000 in Phase 1 & 2 each, total $100,000 in two phases.

Administration

The cash flow support is managed and automatically calculated by the ATO. The employers will need to lodge an activity statement to trigger the entitlement. The earliest date to receive credit is 28 April 2020. If the credit puts the business in a refund position the excess amount will be refunded by the ATO within 14 days.

Payments and timing

Businesses that lodge activity statements on a quarterly basis will be eligible to receive credits in the first phase for the quarters ending March 2020 and June 2020. Credits in the second phase will be available for the quarters ending June 2020 and September 2020. The minimum $10,000 payment will be applied to the first lodgement.

Business that lodge on a monthly basis will be eligible for the credits in the first phase for the March 2020, April 2020, May 2020 and June 2020 lodgements. Credits in the second phase will be available for the June 2020, July 2020, August 2020 and September lodgements.

A brief summary is included in the following:

• The first phase ensures that eligible employers receive a credit equal to 100% of the PAYG amounts withheld from salary and wages paid to employees during the relevant period with a minimum of $10,000 and maximum amount of $50,000.
• The second phase ensures that eligible employers receive another series of credits, equal to the credits that were received under the first phase.
• For example, if a business received $38,000 of credits in the first phase it will receive a further $38,000 of credits in the second phase. These additional credits will be spread over two or four activity statement periods, depending on whether the employer lodges on a quarterly or monthly basis.

Quarterly Lodger

Phases	Minimum	Maximum	BAS lodgements	Credit Dates
Phase 1	$10,000	$50,000	March 2020 quarter	28/04/2020
	Nil	balance	June 2020 quarter	28/07/2020
Phase 2	$5,000	50% of Phase 1	June 2020 quarter	28/07/2020
	$5,000	50% of Phase 1	September 2020 quarter	28/10/2020

Monthly Lodger

Phases	Minimum	Maximum	BAS lodgements	Credit Dates
Phase 1	$10,000	3 times of PAYG-W; max. at $50,000	March 2020	28/04/2020
	Nil	PAYG-W; max. at $50,000	April 2020	21/05/2020
	Nil	PAYG-W; max. at $50,000	May 2020	21/06/2020
	Nil	PAYG-W; max. at $50,000	June 2020	28/07/2020
Phase 2	$2,500	25% of Phase 1	June 2020	28/07/2020
	$2,500	25% of Phase 1	July 2020	21/08/2020
	$2,500	25% of Phase 1	August 2020	21/09/2020
	$2,500	25% of Phase 1	September 2020	21/10/2020

Are you eligible for Cash Boost?  It only takes less than half an hour and could save you thousands.

Contact Beyond Taxation for some help with your business today on 1300 552 993 or email Joy@beyondtaxation.com.au

Disclaimer: This is general advice based on information available at the time and may not be relied upon.