Support now increased to a minimum of $20k and up to a maximum of $100k for employers.
What is available and to whom?
Small and medium sized business with annual turnover under $50 million that employ workers will now be eligible for a payment equal to 100% of their salary and wages withheld (the PAYGW amounts) for the period 1 January to 30 June 2020 on lodgement of their Business Activity Statements (BAS).
How do I get it?
You many need to take action here depending on your circumstances. If you’re a qualifying business, then the payments will automatically be applied via the business activity statement system.
If you’re operating a business in which family members normally receive payments by way of trust distributions or company dividends as opposed to salary and wages, there ‘may’ still be an opportunity to access this measure however our advice is to tread carefully. If you’re considering changing the way in which people are paid in order to maximise your entitlement we recommend you contact us or speak to your own accountant first.
When and how will it be paid?
For quarterly lodgers the first round payment will be calculated as 100% of the Quarterly PAYGW activity statement amounts for both the March and June 2020 quarters, up to the first rounds maximum amount of $50,000.
For monthly lodgers the first round payment will be calculated as three times the amount of the March 2020 PAYGW activity statement (this is to make up for the entire January to March 2020 period). Subsequent payments will be calculated at 100% of the monthly PAYGW activity statement amounts, until the maximum payment is reached.
As part of the second round of Government stimulus, an additional payment is being introduced for eligible businesses in the July – October 2020 period that is equal to the initial payment received in the March and June quarters. At this stage, the second round payment will be applied to activity statements from June to September 2020.