Helping you get your stimulus entitlements

The Federal Government has upgraded the assistance package for small and medium businesses (turnover less than $50m) announced last week.

The upgrade means that a small or medium business that employs people will be eligible for payments up to $100,000. With a minimum payment of $20,000.

Here are the key points which can help boost cash flow in these uncertain economic and social times:

• Withheld tax on employees’ salary and wages will receive a payment of 100 per cent of the amount withheld subject to a limit of $100,000.
• Employers that pay salary and wages will receive a minimum payment. Even if they are have not had to withhold tax.

Employers will receive a payment equal to 100% of their salary and wages withheld. Maximum payments have increased to $50,000 in respect of the March quarter. The minimum payment has increased to $10,000.

Eligible businesses will benefit with an additional payment equal to the total of all the stimulus packages for increasing cash flow they have received. That takes the maximum benefit to $100,000 with a minimum of $20,000.

The Government objective to is to sustain businesses and improve their ability to retain staff.

Additionally, if your business employs apprentices and trainee’s, eligible employers can apply for a wage subsidy of 50% during the period of January 2020 through to September 2020.

The Australian Tax Office (ATO)  will automatically calculate the payments. The good news is no new forms are required.

However, your business will need to ensure that its requirements with the ATO are up to date with the first hurdle to clear being lodging the March BAS on time.

There may be a requirement to have your other tax obligations up to date ahead of the second tranche of payments. These are the records from whence the ATO will draw their calculations.

Here’s the Government release –    CLICK HERE 

BridgePoint Group is operating during these extraordinary times. Our expertise in ensuring your business receives its maximum entitlements.

Please reach out to us for further explanation around the Government’s various stimulus packages.

Stay home and stay safe.

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Mitchell Turnbull

DIRECTOR

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