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Cash boost for sole traders

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As a sole trader that lodges BAS in my own name, can the ATO please advise how to complete the March 2020 BAS where the only item that I complete is PAYG instalments (not PAYG withholding), to receive the cash flow boost.

 

Thank you

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Hi @jjobson 

 

I hope you are doing okay. Have you determined yet if you are eligible for the cash flow package?

 

According to business.gov.au (https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support...):

You will be eligible to receive the cash flow boost if you are a small or medium business entity, including not-for-profit organisations, sole traders, partnership, company or trust that:

  • held an ABN on 12 March 2020 and continues to be active
  • has an aggregated annual turnover under $50 million (generally based on prior year turnover)
  • made eligible payments you are required to withhold from (even if the amount you need to withhold is zero)

Eligible payments include:

  • salary and wages
  • director fees
  • eligible retirement or termination payments
  • compensation payments
  • voluntary withholding from payments to contractors

In addition, you must also have either:

  • derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12 March 2020
  • made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020

 

You don't need to apply, the cash flow boost is a tax free payment to employers and is automatically calculated by the Australian Taxation Office (ATO). There are no new forms required.

 

If you don't meet the requirements for this, you may be eligible for the Job Keeper subsidy: 
https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support...

 

This would allow you to receive $1500 before tax directly from the Government (as your are a sole-trader), providing you meet the eligibility requirements. 

 

You can also register your interest for updates on our website, just complete the form online – there is no need call us.

 

Unfortunately we are unable to comment further as the Job Keeper legislation is still being discussed in Parliament. As soon as the legislation passes, we will be able to provide further information.  

 

Hopefully this helps!

 

Josh

 

 

1 REPLY 1
Highlighted

Best answer

Community Support

Replies 0

Hi @jjobson 

 

I hope you are doing okay. Have you determined yet if you are eligible for the cash flow package?

 

According to business.gov.au (https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support...):

You will be eligible to receive the cash flow boost if you are a small or medium business entity, including not-for-profit organisations, sole traders, partnership, company or trust that:

  • held an ABN on 12 March 2020 and continues to be active
  • has an aggregated annual turnover under $50 million (generally based on prior year turnover)
  • made eligible payments you are required to withhold from (even if the amount you need to withhold is zero)

Eligible payments include:

  • salary and wages
  • director fees
  • eligible retirement or termination payments
  • compensation payments
  • voluntary withholding from payments to contractors

In addition, you must also have either:

  • derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12 March 2020
  • made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020

 

You don't need to apply, the cash flow boost is a tax free payment to employers and is automatically calculated by the Australian Taxation Office (ATO). There are no new forms required.

 

If you don't meet the requirements for this, you may be eligible for the Job Keeper subsidy: 
https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support...

 

This would allow you to receive $1500 before tax directly from the Government (as your are a sole-trader), providing you meet the eligibility requirements. 

 

You can also register your interest for updates on our website, just complete the form online – there is no need call us.

 

Unfortunately we are unable to comment further as the Job Keeper legislation is still being discussed in Parliament. As soon as the legislation passes, we will be able to provide further information.  

 

Hopefully this helps!

 

Josh