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Re: Boosting cash flow for sole director company

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Dear members,

i am inquirying about Boosting Cash Flow for small businesses.

If Pty Ltd only pays to its sole director(no other employee) as director fees as one go at the end of finanail year 30th June when profit and loss is completed; and director reports the fees received on individual tax return and pay tax at marginal tax rate, i.e. pay tax on peronsal return for income earned from own company, Does Boosting Cash Flow apply to this case after lodging March BAS return on which W2 is nil?

 

Though on ATO website there are inof for jobkeeper payment applicaiton to sole director company, it doesn't in particularly have information relating to the case i present above.

 

If jobkeeper is relating to wage/director fees, and boosting cash relating to tax withholding, i think the case i present above should entitl to both though withhold is Nil, one is relating to wage, the other is relating to withholding.

 

Thank you in advance!

 

AATSKY

 

 

i think sole director company can be

 

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Hi @AATSKY 

Thanks for contacting us, we do understand this can be a little confusing.

The boosting cash flow for employers is for businesses that employ staff. This can include directors who are employees receiving a salary, have tax withheld and are paid super through the business. Based on the information you have provided it appears you do not meet this requirement.

You may be eligible for JobKeeper payments as an eligible business participant, or eligible to apply for early release of super.

I hope this helps and good luck with everything, SueO

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Best answer

Community Support

Replies 1

Hi @AATSKY 

Thanks for contacting us, we do understand this can be a little confusing.

The boosting cash flow for employers is for businesses that employ staff. This can include directors who are employees receiving a salary, have tax withheld and are paid super through the business. Based on the information you have provided it appears you do not meet this requirement.

You may be eligible for JobKeeper payments as an eligible business participant, or eligible to apply for early release of super.

I hope this helps and good luck with everything, SueO

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Thank you! SueO for your advice!