Tax Free payment to assist businesses to pay wages
The payment will provide cash flow support to businesses:
· with a turnover of less than $50 million
· that employ staff, between 1 January 2020 and 30 June 2020.
How it works
Businesses will receive an amount equal to 50% of the Pay As You Go (PAYG) tax that you deduct from wages over the above six months.
A minimum of $2,000 and a maximum of $25,000.
This will be a tax-free payment.
How you’ll get paid
The ATO will deliver the payment as a credit to the business upon lodgement of their activity statements. If this creates a refund, the ATO will pay it within 14 days.
· Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020.
· Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgements. To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (150 per cent) in the March 2020 activity statement.
· The minimum payment will be applied to the business’ first lodgement.
This measure will benefit around 690,000 businesses employing around 7.8 million people.
Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020.
Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
If you need advice on the tax changes, contact Noel May or Amanda Klye on (03) 9585 7555 or firstname.lastname@example.org