What the cash flow boosts are


The Boosting cash flow for employers measure will be done through 2 sets of cash flow boosts to support employers to keep operating, pay rent, electricity and other bills and retain staff.

Through the Australian Taxation Office (ATO), the Government will provide tax-free cash flow boosts of between $20,000 and $100,000 to eligible businesses, delivered through credits in the activity statement system, when they lodge their activity statements up to the month or quarter of September 2020.

Cash flow boosts will generally be equivalent to the amount you withheld from employee wages for each monthly or quarterly period from March to June 2020.

An additional cash flow boost will apply when you lodge activity statements from June to September. These credits will be equal to the total boost credits from March to June 2020.

Eligibility


For most businesses and not-for-profit (NFP) organisations you will be eligible to receive the cash flow boost if:

  • you are a small or medium business entity or NFP of equivalent size (that is, an entity with aggregated annual turnover less than $50 million)
  • you held an ABN on 12 March 2020
  • you made payments to employees subject to withholding (even if the amount you withheld is zero), such a
    • salary and wages
    • director fees
    • eligible retirement or termination payments
    • compensation payments
    • voluntary withholding from payments to contractors
  • you have lodged, on or before 12 March 2020, at least one o
    • a 2018–19 income tax return showing that you had an amount included in your assessable income in relation to you carrying on a business
    • an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that you made a taxable, GST-free or input-taxed sale

If you don't meet these general eligibility criteria but think you may still be entitled to the boost, there are special eligibility rules for entities in the certain situations on the ATO website.

Timing


Initial cash flow boost

The initial cash flow boosts will be delivered as credits in the activity statement system when you lodge your activity statements for each monthly or quarterly period from March to June 2020.

If you lodge:

  • quarterly, you'll be eligible to receive the credit for:
    • quarter 3, March 2020 (lodgment due date 28 April 2020)
    • quarter 4, June 2020 (lodgment due date 28 July 2020)
  • monthly, you'll be eligible to receive the credit for the lodgment periods of:
    • March 2020 (lodgment due date 21 April 2020)
    • April 2020 (lodgment due date 21 May 2020)
    • May 2020 (lodgment due date 21 June 2020)
    • June 2020 (lodgment due date 21 July 2020)

Additional cash flow boost

Eligible entities who received initial cash flow boosts will receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020.

The amounts will equal the total amount of initial cash flow boosts received. This will be delivered in either 2 or 4 instalments, depending on your reporting period.

How to apply


You don't need to apply, the cash flow boost is a tax free payment to employers and is automatically calculated by the ATO. For most businesses, it will automatically be credited to your account when you lodge your activity statement for pay as you go withholding. There are no new forms required.

Find out more about the Boosting cash flow for employers.