PAYG rebate

This extract has been taken from this link below.

‘Legislation has been enacted to provide temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19 (novel coronavirus). This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.  Min is 10K Max 50K

If you are eligible, you do not need to separately apply and upon lodgement of your activity statement, your first amount will automatically be credited to your account but no earlier than 28 April 2020.

The cash flow boosts will be made from the Government’s announced date of 28 April 2020. If you lodge early, you will not receive the cash flow boost before this date.

But also, you must be up to date with your lodgements to be receive so if you are behind now is the time to catch up.

You will be eligible to receive the cash flow boost if you are a small or medium business entity, including not-for-profit organisations, sole traders, partnership, company or trust that:

  • held an ABN on 12 March 2020 and continues to be active
  • has an aggregated annual turnover under $50 million (generally based on prior year turnover)
  • made eligible payments you are required to withhold from (even if the amount you need to withhold is zero).

In addition, you must also have either:

  • derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12 March 2020
  • made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020.

Eg say you withheld 12,000 in PAYG for the Quarter ending 30th March 2020. You will be entitled to the cash flow boost of $12,000 after the 28th April once your March BAS is lodged

Followed by an additional $24,000 after the 28th July once your June BAS is lodged

Followed by final payment of $12,000 after 28th Oct for your Sept BAS

This is a total cash flow Boost of $48,000

Please note this is a credit on your activity statement, if your cash flow boost (Rebate) is more than your activity statement balance you can get a refund into your bank account’

If you need more clarity about the link above, do not hesitate to contact me.

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047