Government Cashflow Assistance Measures, the Covid-19 crisis

Government Cashflow Help 780X660Px

We are very aware of the increasing financial stress being felt by small business operators throughout Australia due to the Covid-19 situation. To help work through this difficult time, one way we can do that is to ensure you are aware of, and are in a position to access government initiated cashflow assistance measures.

To that end, we wanted to highlight the following measures recently announced which we believe will be of particular relevance to many business owners:

  • Boosting cash flow for employers

Up to $100,000 in tax-free payments will be paid to small and medium-sized businesses which employ staff. Eligible businesses will receive payments equal to 100% of their PAYG withheld for the March and June 2020 quarters, subject to a minimum of $10,000 and up to a cap of $50,000. 

The payments received based on this PAYG determined calculation are then matched (ie doubled) with additional payments during the July – October period resulting in total payments of up to $100,000.

These tax-free cash flow boosts will be automatically calculated and administered by the ATO. There are no new forms required. 

  • ATO relief

Amongst other concessions, the ATO has announced its willingness to defer by up to 4 months the payment of tax amounts due through BAS (including PAYG instalments), income tax assessments and FBT assessments.

  • Payroll Tax Relief

Most states (including NSW, Queensland, Victoria and WA) have announced various payroll tax concessions. For example, in NSW small and medium-sized businesses will have their payroll tax liability waived for the June 2020 quarter.

  • Loan guarantee scheme

The government has announced that it will guarantee 50% of eligible loans taken out by businesses disrupted by CV-19. Unsecured loans (up to $250,000) can be accessed through participating banks and non-bank lenders, must be used for working capital purposes and granted within six months starting 1 April 2020.

Cashflow Government Help

If you would like any further information on anything related to the above, please feel free to contact Anthony Pascoe of IWS on 0401 700 107 (even if you are not an IWS customer).