There is some good news coming from the Federal Government to help small businesses through this crisis. Get in touch with your financial adviser to get the help you need.
Reduce PAYG Withholding Tax
· The ATO is offering up to $50,000 reduction on businesses PAYG Withholding Tax payments (Tax withheld for staff salaries).
· It doesn’t extend to GST or Income tax.
· Each employer will receive a credit of 100% of the PAYG Withholding tax that is payable, up to a max of $50,000.
· This applies per Employer. $50,000 maximum per employer.
· In your next BAS (March 2020) you will receive a rebate of 100% of the total PAYG withholding for the period. This period covers 1/1/2020 to 31/3/2020
· In your following BAS (June 2020) you will receive a rebate of 100% of the total PAYG withholding for the period. This period covers 1/4/2020 to 30/6/2020.
· In your next BAS (March 2020) you will receive a rebate of 300% of the total PAYG withholding for the month of March. The period covers 1/3/2020 to 31/3/2020.
· This is to reflect that Jan and Feb IAS’s have already been lodged.
· To qualify for the addition payment, you must continue to be active (continue to lodge IAS/BAS’s).
· The PAYG withholding credits issued for the period March to June 2020 (as per point 1 above), will be duplicated for the period of July to October 2020.
$20,000 payment to Employers with no PAYG Withholding Tax
· If you are registered as an employer, but are not required to withholding any PAYG Withholding Tax (this could be because your staff earn under the tax threshold, or you don’t have any staff at the moment) you will automatically receive 3 payments. $10,000 once you lodge your March BAS, $5,000 when you lodge your June BAS and $5,000 when you lodge your September BAS.