Author: Tony Rule, Partner, TAG Financial Services
The Cash Flow Boost announced in the second stimulus package by the Federal Government on 22 March 2020 has understandably created some confusion amongst business owners.
The Cash Flow Boost is not a payment to the business owner – it is actually a credit that is processed to the ATO account. The credit simply means that the business has a reduced amount to pay to the tax office and is not a payment to the business.
As a reminder, the credit is based on 100% of PAYG withholding up to a maximum of $50,000 (and a minimum of $10,000) on the March 2020 BAS and then the same amounts spread over the June and September BAS’s.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).