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Cashflow Boost - Partnership and Trust

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Hi, 

My client runs a PPT and an opertating Trust. It is a Dental Clinic.I am a BAS Agent. 

The income comes through the PPT and the Trust invoices the PPT for 60% each month and the remainder in the PPT is drawn on by both partners. Wages and operating expenses for the business are paid through the Trust. I lodge BAS for both the PPT and the Trust. 

Trust has received the $10k boost as PAYG is paid through Trust. I advise the client can not receive for the PPT as wages are paid through Trust. Client has now spoken to the Accountant who has advised both are different companies/ business and he can apply for the cashflow boost for the PPT. I am pretty sure this is NOT true and I am sure I seen some information somewhere validating my advice the PPT is not eligible. Can I get some confirmation please. Thank you. Tanya

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Hi @SwitchedOn 

 

Thanks for contacting ATO Community.

 

Businesses (including sole traders, companies, partnerships or trusts) and NFP organisations will be eligible to receive the cash flow boost if:

  • You are a small or medium business entity or NFP of equivalent size (that is, an entity with aggregated annual turnover less than $50 million).
  • You held an ABN on 12 March 2020.
  • You made payments to employees subject to withholding (even if the amount you were required to withhold is zero), such as      
    • salary and wages
    • director fees
    • eligible retirement or termination payments
    • compensation payments
    • voluntary withholding from payments to contractors.
     
  • On or before 12 March 2020, you lodged at least one of
    • a 2018–19 income tax return showing that you had an amount included in your assessable income in relation to you carrying on a business
    • an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that you made a taxable, GST-free or input-taxed sale.
     

There are only exceptional circumstances where we may have discretion to give you further time after 12 March 2020.

 

You won’t be disadvantaged if you have been given a deferral for your earlier activity statement or are not required to lodge your income tax return yet. Read more about the impact of lodgment deferrals.

 

You are not eligible for the cash flow boosts if you change the way you operate for the sole or dominant purpose of becoming entitled to cash flow boosts when you would otherwise not be entitled. Read more about schemes.

 

If you don't meet these general eligibility criteria but think you may still be entitled to the boost, there are special eligibility rules for entities in the following situations:

I hope this information is helpful and you remain well during this time.

 

MariR

1 REPLY 1
Highlighted

Best answer

Community Support

Replies 0

Hi @SwitchedOn 

 

Thanks for contacting ATO Community.

 

Businesses (including sole traders, companies, partnerships or trusts) and NFP organisations will be eligible to receive the cash flow boost if:

  • You are a small or medium business entity or NFP of equivalent size (that is, an entity with aggregated annual turnover less than $50 million).
  • You held an ABN on 12 March 2020.
  • You made payments to employees subject to withholding (even if the amount you were required to withhold is zero), such as      
    • salary and wages
    • director fees
    • eligible retirement or termination payments
    • compensation payments
    • voluntary withholding from payments to contractors.
     
  • On or before 12 March 2020, you lodged at least one of
    • a 2018–19 income tax return showing that you had an amount included in your assessable income in relation to you carrying on a business
    • an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that you made a taxable, GST-free or input-taxed sale.
     

There are only exceptional circumstances where we may have discretion to give you further time after 12 March 2020.

 

You won’t be disadvantaged if you have been given a deferral for your earlier activity statement or are not required to lodge your income tax return yet. Read more about the impact of lodgment deferrals.

 

You are not eligible for the cash flow boosts if you change the way you operate for the sole or dominant purpose of becoming entitled to cash flow boosts when you would otherwise not be entitled. Read more about schemes.

 

If you don't meet these general eligibility criteria but think you may still be entitled to the boost, there are special eligibility rules for entities in the following situations:

I hope this information is helpful and you remain well during this time.

 

MariR