Employers that have received the initial cash-flow boost, delivered as credits in the activity statement system (in either their March 20 quarterly BAS and/or April 20 & May 20 IAS), are eligible for the second round when they lodge their activity statements for each monthly or quarterly period from June to September 2020.
In a new notice published this week, the ATO has explained that the additional amount will be equal to the total initial cash-flow boost received by businesses and will be split evenly over the lodgements for the periods June to September.
This means that businesses lodging quarterly will receive 50 per cent of their total initial cash-flow boost for each activity statement, while those lodging monthly will receive 25 per cent per statement.
An example provided by the Tax Office shows that if an employer, lodging quarterly, received an initial cash-flow boost of $10,000 (the minimum credit), they will receive two additional boosts of $5,000 each when they lodge their June and September activity statements (BAS).
Similarly, a business lodging monthly that initially received a total of $50,000 (the maximum credit) will receive four payments of $12,500 when they lodge their June to September activity statements (BAS & IAS).
The ATO has cautioned businesses that may have revised their activity statements after lodgement that this may affect the amount of cash-flow boost they were due to receive.
If you would like more information on what Cash Flow Boost you could be expecting in your upcoming BAS, or if you want to ensure you are utilising the full potential of the Cash Flow Boost please contact us as soon as possible to ensure you do not miss out – (08) 8431 1644.