Announcements
Looking for information on the JobKeeper extension? Check out our answers to common questions the community has been asking.

ATO Community

Multiple entities paid wages from a group company

Highlighted

Newbie

Views 210

Replies 1

Our business has 4 operating entities who contribute their appropriate fortnightly costs (incl. wages and SGC) to our Group company.  Group then makes the wages payment direct to all employees.  We are a small business. My question is do each of the 4 operating entities, all geographically spread out in Perth, and each with different shareholdings, get the Boost for each entity or only the Group company. 

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

Community Support

Replies 0

 

Hi @PJD,

 

 

Thanks for contacting ATO Community,

 

That’s a good question; in regards to Boosting cash flow for employers, with Businesses with related parties, or that are part of a group the ATO will use the annual turnover in your most recent previous year’s tax return, as well as other information held by us, to determine your eligibility. You won’t be eligible for the cash flow boost if your annual turnover and the annual turnovers of entities connected or affiliated with you total more than $50 million.

 

If you don't have lodgments from previous years or are not required to lodge a tax return,  you may still be eligible if we are satisfied that your aggregated annual turnover is under $50 million; again the ATO will determine your eligibility. If you are not required to be registered for GST and you have not lodged your 2018–19 tax return, special rules apply and the ATO will soon provide more information about your eligibility and how you can provide evidence that you had assessable income or made sales in the relevant periods.

 

You can keep up to date by regularly checking out our ato.gov.au page, which is designed to support businesses affected by the significant economic impact caused by COVID-19.

 

I hope this helps,

MariR

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

 

Hi @PJD,

 

 

Thanks for contacting ATO Community,

 

That’s a good question; in regards to Boosting cash flow for employers, with Businesses with related parties, or that are part of a group the ATO will use the annual turnover in your most recent previous year’s tax return, as well as other information held by us, to determine your eligibility. You won’t be eligible for the cash flow boost if your annual turnover and the annual turnovers of entities connected or affiliated with you total more than $50 million.

 

If you don't have lodgments from previous years or are not required to lodge a tax return,  you may still be eligible if we are satisfied that your aggregated annual turnover is under $50 million; again the ATO will determine your eligibility. If you are not required to be registered for GST and you have not lodged your 2018–19 tax return, special rules apply and the ATO will soon provide more information about your eligibility and how you can provide evidence that you had assessable income or made sales in the relevant periods.

 

You can keep up to date by regularly checking out our ato.gov.au page, which is designed to support businesses affected by the significant economic impact caused by COVID-19.

 

I hope this helps,

MariR