Updated 20 April 2020
The Federal Government will deliver two cash boosts through the Australian Tax Office to organisations that have employees. The purpose of the cash boosts is to help small organisations retain employees. Co-operatives and mutuals are eligible if they meet the following criteria.
- You must have had an Australian Business Number (ABN) from 12 March 2020
- You must still be operating
- Your annual turnover must be less than $50 million
- You must have made eligible payments being:
- Wages or salaries
- Directors’ fees
- Other payments that you would normally have to report to the ATO and from which you would withhold PAYG tax
Proving your turnover
This is determined by reference to your previous tax return. It is important that you have already lodged your tax return for the previous financial year or that you have an extension for lodgement in place.
You must also have your Activity Statements up to date to show that you have made GST taxable, GST free or input taxable sales in the previous tax period.
How to apply
There is no need to make an application. The ATO determines your eligibility by examining your previous year’s tax return and your Activity statements.
If you lodge your Business Activity Statements (BAS) quarterly, you should lodge the March BAS before 28 April 2020. The first cash boost payment will be credited to your account by the ATO after 28 April. There is a second cash boost on 28 July 2020.
The Cash Boost measure is separate to JobKeeper, read the JobKeeper information to understand eligibility and application requirements for that measure for your co-op.
How much is the cash boost?
For businesses that either withhold zero PAYG because their employees earn below the tax threshold or those that withhold PAYG up to $10,000, in the first cash boost they will automatically receive the minimum payment of $10,000. For businesses with larger workforces withholding more than $10,000, the cash boost will be equal to the amount withheld with a cap of $50,000.
This amount will then be matched in the second cash boost.
How can BCCM help?
- Supply chain and business continuity issues – email firstname.lastname@example.org Attn: Anthony Taylor
- Government assistance for coronavirus impacted businesses – email email@example.com Attn: Anthony Taylor
- Free coronavirus updates and information. Sign up to our eNews – email firstname.lastname@example.org Attn: Steph Newman
- Follow us on LinkedIn, Twitter, Facebook
- Go to our COVID-19 page
- Join the coronavirus member group – email email@example.com Attn: Steph Newman
Information about becoming a member:
- Email firstname.lastname@example.org
This information was prepared by the BCCM. It does not constitute legal or other professional advice and should not be relied on as such. You should obtain legal or other professional advice in relation to any particular matters or concerns that you have. The BCCM does not make any claim or representation or give any warranty in relation to the document, and is not responsible for the accuracy, currency or suitability of the information in the document.