The Australian Government has announced it’s $17.6 billion economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world battles to contain the spread of the coronavirus.
Once of these measures is the provision of $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff. The payment will be tax free.
Eligibility will be based on prior year turnover and delivered in the following way
- The payment will be delivered by the Australian Taxation Office (ATO) as a credit in the activity statement system from 28 April 2020 upon businesses lodging eligible upcoming activity statements.
- Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 50 per cent of the amount withheld, up to a maximum payment of $25,000.
- Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax.
Read more about boosting cash flow for employers