The Government is providing tax-free cash flow boosts of between $20,000 and $100,000 to eligible businesses (for businesses with an annual turnover of under $50 Million and employing staff).
Employers will receive a payment equal to 100 per cent of their PAYG tax withheld, with the maximum payment of $100,000.
This will automatically be paid as credits in the ATO activity statement system, after you lodge activity statements (from lodgement of 31 March 2020- Quarterly/Monthly statements).
In the event the business’s ATO account has a credit balance, this will be refunded by the Australian Taxation Office within 14 days.
Under the JobKeeper Payment, businesses impacted by the coronavirus will be able to access a subsidy to continue paying their employees. The Government will provide a fortnightly payment of $1,500 per eligible employee until September 2020.
Employers will need to pay eligible employees* a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month.
JobKeeper payments can be made for the period beginning 30 March 2020. However, the payments to eligible employers will commence in the first week of May 2020.
Eligible employers are those with an annual turnover of less than $1 billion who have assessed that they have had a revenue reduction of 30% or more.
Sole traders, business owners and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement.
There are additional requirements for employers with a turnover of over $1 billion.
* Eligible employees are full time, permanent part-time and casual employees (if they were employed as a casual for over 12 months) as at 1 March 2020. The commencement of this was 30 March 2020.
From 12 March 2020 until 30 June 2020 the instant asset write-off:
The ATO has provided the following options as possible ways to obtain tax relief.
If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Frank Allen at firstname.lastname@example.org.