Tax-Free Refund of PAYG Paid


The payment will provide cash flow support by way of a Tax-Free Refund of PAYG Paid to the businesses that:

  • have a turnover of less than $50 million in the year to 30 June 2019, and
  • that employ staff, between 1 January 2020 and 30 June 2020.

How it works

1st tier – Initial Payments

  • Businesses will receive an amount equal to 100% of the Pay As You Go (PAYG) tax that you deduct from wages for the 2 quarters ended 31 March 2020 and 30 June 2020.
  • The total of these 2 payments is called the “Initial Payments”. (See later).
  • The maximum is refund under this section is $50,000.
  • The minimum is $10,000 even if the amount that you withheld from employees’ wages in that 6 months is less than that.

2nd Tier – Additional Payments

  • If the business remains active through to 28th October 2020, then the 2nd tier of payments kicks in.
  • For the quarter ended 30 June 2020, 50% of the total “Initial Payments” for March and June quarters (maximum $25,000).
  • For the quarter ended 30 September 2020 – Identical 50% of the “Initial Payments” for March and June quarters (maximum $25,000).


A Tax-Free Refund of PAYG Paid with a minimum of $20,000 and a maximum of $100,000.

Tax free

This will be a tax-free payment.

How you’ll get paid

  • The ATO will deliver all of the payments as a credit to your business upon lodgement of your activity statements.
  • There are no new forms required.
  • If this creates a refund, the ATO will pay it to you within 14 days.


  • BAS Mar 2020 – due 28 Apr 2020       1st Initial payment
  • BAS Jun 2020 – due 28 Jul 2020         2nd Initial payment & 1st Additional payment
  • BAS Sep 2020 – due 28 Oct 2020       2nd Additional Payment
  • If a business lodges their BAS monthly, different timings apply.
  • The minimum payment will be applied to the business’ first lodgement.

If you need advice on the tax changes, you can contact Noel May or Amanda Klye of May Klye & Associates on (03) 9585 7555 or

Previous post:

Next post: