Legislation was enacted on the 24th March, 2020 to provide two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees affected by COVID-19.
The ATO will provide tax-free cash flow boosts of between $20,000 and $100,000 to eligible businesses, delivered through credits in the activity statement system, when eligible businesses lodge their activity statements.
You will not be eligible for cash flow boosts if you (or a representative) have entered into or carried out a scheme for the purpose of:
becoming entitled to cash flow boosts when you would otherwise not be entitled, or
increasing the amount of the cash flow boosts.
This may include restructuring your business or the way you usually pay your workers to fall within the eligibility criteria, as well as increasing wages paid in a particular month to maximise the cash flow boost amount.
The ATO has warned that;
"any sudden changes to the characterisation of payments made may cause us to investigate whether the payments are in fact wages. If the payments are wages, we may consider the characterisation of past payments, including whether they should have been subject to PAYGW and whether super guarantee contributions should have been made. You may also have FBT obligations that have not yet been met."Now, more than ever you need to have a chat to one of our tax experts at DISAVIA CONSULTING.
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