The ATO continues to provide regular updates with further information on the different COVID-19 relief measures. The first relates to the small business tax cash flow boost that is related to the PAYG withholding declared on the March 2020 BAS. An important part of the eligibility criteria is that the business has lodged prior to 12 March 2020 their 2019 tax return or a BAS for the 2019 year. This caused alarm amongst several businesses who had not met the criteria as they lodged their BAS annually and therefore they were not due to be lodged until mid-May 2020. The ATO has clarified that businesses where the lodgement has not been met due to lodgement deferrals will still be eligible. However such businesses must either wait to receive the payment until they lodge their BAS or can supply supporting documentation to the ATO to prove their eligibility.

Interestingly it is not known yet whether this easing of the criteria will also apply to the JobKeeper payments where there are similar criteria for businesses wishing to claim for one business owner. It is noted the Treasurer has such discretion but no announcement or indication has been given whether this will be given. What has been confirmed is that the JobKeeper payments are a “one in, all in” scheme. The ATO has confirmed that all eligible employees must be registered and employers will not get to choose to nominate only certain employees. The only way an eligible employee can be excluded is if the employee chooses not to participate. This is likely to be a burden for some businesses given the requirement that businesses prepay their employees $1,500 per fortnight. As such, for business with eligible casuals or part time employees who earn less than $1,500 the business will need to generate the cash flow to pay these eligible employees which may be difficult in these tough economic times.

If you have any queries or need any assistance with your JobKeeper payments, please do not hesitate to contact us.