Below is the second stimulus package update. In summary (to be eligible you must be an established employer prior to 12 March 2020).
- The minimum and maximum benefits have now increased from $2,000 and $25,000 to $20,000 and $100,000.
- You are now also eligible for 100% of your PAYG Withholding amounts, up from 50%.
- The timing has also changed so that you can get a credit of up to $50,000 in your March BAS if your PAYG Withholding for the quarter is equal to or greater than $50,000
- You are then eligible for the same total credits above in four equal instalments in June, July, August and September 2020. If you only pay your liability quarterly and not monthly then and you will get 50% of your entitlement in June 2020 BAS and 50% in your September 2020 BAS.
Examples
Monthly Activity Statements.
The examples in the attached link gives good guidance as to what will happen if you are a monthly reporter of wages and PAYG (Withholding) i.e. Sarah’s Construction and Sean’s Hairdresser Salon.
Quarterly Activity Statements example:
Example 1
| March 2020 BAS | GST payable | 10,000 |
| PAYG(W) | 30,000 | |
| 40,000 | ||
| Less Stimulus credit | (30,000) | |
| Amount payable | $10,000 | |
| June 2020 BAS | GST payable | 15,000 |
| PAYG(W) | 25,000 | |
| 40,000 | ||
| Less Stimulus credit | (20,000) | |
| 20,000 | ||
| Less Boosting cashflow for employees | 25,000 | |
| Amount payable | $5,000 | |
| September 2020 BAS | GST payable | 5,000 |
| PAYG(W) | 25,000 | |
| 30,000 | ||
| Less Boosting cashflow for employees | (25,000) | |
| Refund due | $5,000 |
Example 2
| March 2020 BAS | GST payable | 10,000 |
| PAYG(W) | 5,000 | |
| 15,000 | ||
| Less Stimulus credit (max) | (10,000) | |
| Payment due | $5,000 | |
| June 2020 BAS | GST payable | 10,000 |
| PAYG(W) | 5,000 | |
| 15,000 | ||
| Less Boosting cashflow for employees | (5,000) | |
| Amount payable | $10,000 | |
| September 2020 BAS | GST payable | 10,000 |
| PAYG(W) | 5,000 | |
| 15,000 | ||
| Less Boosting cashflow for employees | (5,000) | |
| Amount payable | $10,000 |
On top of this:
Business loans
The government will guarantee unsecured business loans raised to deal with Coronavirus issues up to $250,000. The loans are for three years and no repayments required for the first six months.
Company Directors Relief
Company directors will be relieved from personal liability when the company is trading insolvent for a period of six months.
Payroll Tax
You still have to lodge monthly payroll tax reports but don’t have to pay your March, April and May obligations.
Your annual reconciliation is then lodged, your annual liability assessed, you are then credited your relief via a 25% discount and you pay the balance due or receive a refund.
The payroll tax threshold for next year has increased to $1,000,000.
The link below takes you to a Federal Treasury page that outlines the updated stimulus package for businesses.
