Employers that have received the initial cash-flow boost, delivered as credits in the activity statement system, are eligible for the second tranche when they lodge their activity statements for each monthly or quarterly period from June to September 2020.
Tax experts have predicted that the second round could see clients rush to lodge their BAS at the end of the month, coinciding with tax time 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, they will receive two additional boosts of $5,000 each when they lodge their June and September activity statements.
Similarly, a business lodging monthly that initially received a total of $50,000 will receive four payments of $12,500 when they lodge their June to September activity statements.
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.
“You can check your statement of account for details on how your account may have been adjusted,” the ATO said.
The Tax Office has also advised employers that haven’t made payments to employees subject to withholding to report “0” for pay-as-you-go (PAYG) withholding when lodging their activity statement to ensure they receive the additional cash-flow boost.
“It’s important you don’t cancel your PAYG withholding registration until you’ve received the additional cash-flow boosts,” the ATO cautioned.
Recognising that employers are eager to get their hands on the additional cash-flow boost, the ATO has asked for patience.
“If you didn’t automatically receive the boost, it doesn’t mean you’re not eligible. We may simply need some additional information to determine your eligibility.”
To date, the ATO has applied $13.38 billion in cash-flow boost credits to 708,000 businesses.
If you lodge:
- quarterly – you will be eligible to receive the credit for
- quarter 3 (January, February and March 2020) – lodgement due date is 28 April 2020
- quarter 4 (April, May and June 2020) – lodgement due date 28 July 2020
- monthly – you will be eligible to receive the credit for
- March 2020 – lodgement due date 21 April 2020
- April 2020 – lodgement due date 21 May 2020
- May 2020 – lodgement due date 22 June 2020
- June 2020 – lodgement due date 21 July 2020