SHARON’S SIMPLE SUMS
CASH FLOW ASSISTANCE FOR BUSINESS DEMYSTIFIED
The Government is providing temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19 (novel coronavirus). This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.
To assist you all to understand all the information out there I have given three examples.
These fund are only available to active eligible employers established prior to 12 March 2020. Except for Australian Charities and not-for-profit.
Quarterly Lodgement of BAS & PAYG
Example - Employers Reporting Quarterly PAYG of $15,000 (Assume Same Amount for each Quarter)
- Cash Flow for Business – Maximum $50,000
- March BAS – Credit to your BAS Account of 100% of PAYG = $15,000
- June BAS – Credit to your BAS Account of 100% of PAYG = $15,000
- Additional Payment – 100% of first two payments $30,000 in two Payment
- June BAS– Credit to your BAS Account of 50% of Cash Flow Payment = $15,000 plus the first Cash Flow Bonus = total $15,000
- September BAS – Credit to your BAS Account of 50% of Cash Flow Payment = $15,000
Monthly Lodgement of BAS & PAYG
Example - Employers Reporting Monthly PAYG of $12,000 (Assume Same Amount for each Quarter)
- Cash Flow for Business – Maximum $50,000
- March BAS – Credit to your BAS Account of 3 Times March PAYG
300% of PAYG = $12,000 x 3 = $36,000
- April IAS – Credit to your BAS Account of 100% of IAS Instalment $12,000
- May IAS – Credit to your BAS Account of Balance of $50,000 Cap $50,000 – 36000 – 12,000 = $2000
- Additional Payment – 100% of first two payments $50,000 – Paid in Four Instalments
- June BAS – Credit to your BAS Account of 25% of Cash Flow Payment = $12,500
- July IAS – Credit to your BAS Account of 25% of Cash Flow Payment = $12,500
- August IAS – Credit to your BAS Account of 25% of Cash Flow Payment = $12,500
- September IAS – Credit to your BAS Account of 25% of Cash Flow Payment = $12,500
Quarterly Lodgement of BAS & PAYG – Small Payer
Employers Reporting Quarterly PAYG of $0 (Assume Same Amount for each Quarter)
- Cash Flow for Business – $10,000
- March BAS – Credit to your BAS Account of fixed amount of $10,000
- Additional Payment – 100% of first Payment of $10,000 – Paid in Two Instalments
- June BAS – Credit to your BAS Account of 50% Cash Flow Instalment = $5,000
- September BAS – Credit to your BAS Account of 50% Cash Flow Instalment - $5,000