Company eligible for $100,000 Cashflow Boost which was then fully utilised. $50,000 of the CFB was then applied by accountant as a distributable surplus as dividends payable to utilise franking credits
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Hi @Loaner1967
The cash flow boosts aren’t taxable income. That means it doesn’t impact your tax payable.
If, at the end of the year, your company has a surplus of income because of the cash flow boost, you can distribute it as a dividend to shareholders. We expect it to be a rare occurrence, since the intent of cash flow boost was to aide businesses in a time when revenue was low due to COVID, but it can and will happen to some.
You can read about the tax consequences of the CFB on our website.
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Hi @Loaner1967
The cash flow boosts aren’t taxable income. That means it doesn’t impact your tax payable.
If, at the end of the year, your company has a surplus of income because of the cash flow boost, you can distribute it as a dividend to shareholders. We expect it to be a rare occurrence, since the intent of cash flow boost was to aide businesses in a time when revenue was low due to COVID, but it can and will happen to some.
You can read about the tax consequences of the CFB on our website.
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