Are you eligible for a cash flow boost?September 14, 2020
In this time of global pandemic, the Australian government has announced that they are providing cash flow boosts of amounts between $20,000 and $100,000, in order to support Ballarat and Bendigo small to medium businesses. Applying for a cash flow boost can be a complex process, which is why Accountable Business Solutions are offering valuable advice and assistance for employers looking to obtain this government financial support. We can identify if you are eligible and help you through the process of application and management of business financials.
To be eligible for a cash flow boost for your Ballarat or Bendigo business, you must:
- Have held an Australian Business Number on March 12th, 2020, that continues to be active
- An aggregated annual turnover of under $50 million
- Made eligible payments including salary and wages, compensation payments, retirement or termination payments, etc, that the business is required to without from (even if the amount required to be withheld is zero)
- Must have derived business income in the 2018-2019 income year period and lodged the 2019 tax return before or on March 12th, 2020,
- Made GST taxable, input taxed or GST-free sales in a previous tax period, and lodged the activity statement on or before March 12th
These cash flow boosts are delivered to small to medium businesses through credits in the activity statement system and come in two rounds. The first cash flow boost is decided by the number of PAYG withholdings from wages or the minimum cash blow boost payment, and the second is determined by the amount given in the first cash flow boost, not on the actual withholdings from the employer.
It is important to note that businesses who change the way they operate, e.g., change from a sole trader to a company for the purpose of receiving a cash flow boost will not be eligible.
In order to accurately determine if your business is eligible for a cash flow boost, and to make an application, you must seek help from industry experts. The Accountable Business Solutions in Ballarat and Bendigo team can assist you and help your business survive this difficult time. Contact us today on (03) 5331 3118, we look forward to hearing from you.