Written by Kyle Rowston-Wolcott.
Up to $100k for Small and Medium Businesses…
The Government has announced two rounds of payments for businesses paying wages, to be compensated by at least $20,000 in the next 6 months. Businesses that withhold tax on employee wages and salaries may be eligible to up to $100,000 (including the $20,000 minimum).
If you are an employer who is required to withhold tax…
You may be eligible to receive a payment equal to 100 per cent of the amount of the withheld from your employees’ salaries and wages, up to a maximum payment of $50,000. This payment will occur twice (one in April, and one in the July-October period) for a combined maximum of $100,000.
If you are an employer who is not required to withhold tax…
You may be eligible to receive the minimum payment of $10,000, even if you are not required to withhold tax.
Conditions for Payment…
The first payment will be delivered by the ATO as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements.
The payments will only be available to active eligible employers established prior to 12 March 2020.
There will be a second identical payment made to eligible entities during the July-October 2020 period to further assist businesses.
- Your business must have an annual turnover under $50 million (based on your previous year);
- Your business must employ workers; and
- Your business must have been an active employer since 12 March 2020.
These applications should be completed and submitted as soon as possible to guarantee your eligibility by 28 April 2020.
For assistance in completing these applications please consult your accountant or the Government website for more information.
The contents are for informational purposes only and do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such.
Uther Webster & Evans can provide you with advice and assist you with your commercial and personal affairs call or email us to discuss.