ATO Community

Repayment of Cash Boost Credit

Devotee

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Replies 1

Hi All,

 

Hoping for some clarity on the Cash Boost Credit given by the ATO.

 

As an Australian registered legal entity of a relatively small global group we received the Cash Boost credit in full during its relevant period. In our December Year end accounts, the Auditors have advised us to provide for repayment to the ATO of the Cash Boost.

 

As we did not apply for the Cash Boost but were given it, what should we do next? Do we need to contact the ATO or wait for them or ask the Auditors to clarify?

 

I am starting to refinance to make the repayment if neccessary but, I do not want to pay interest on the cashboost if we have to repay as we did not apply for it and as everyone appreciates, it was a busy time of year given the impact on society in general.

 

Thanks in advance

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Most helpful response

ATO Community Support

Replies 0

Hi @Philipi,

 

You can request a review of your eligibility for Cash Flow Boost (CFB) with us if your auditors believe that you are not eligible.

 

We will thank you for your transparency and If our review indicates that you are:

  • not eligible, no penalties/interest will be applied to any payment/overpayment. 
     
  • eligible, we will give you confirmation in writing based on the information used to make the decision.

We use information from your tax returns as well as other information on our systems to work out your eligibility. The cash flow boost will be automatically put into your accounts when you lodge your activity statements, so you don't have to apply for it.

 

So, it's best to discuss the matter with us before starting to refinance to pay us back.

 

Since the Cash Flow Boost has two phases, if you were eligible for CFB1, then you will also be eligible for CFB2, even though you did not trade or withhold any PAYGW during the period of CFB 2.

 

The CFB2 amounts will be equal to the total amount of initial cash flow boosts received and split evenly over the lodgments for the periods June 2020 to September 2020.

 

Please review the Eligibility companion guide for cash flow boost and Boosting cash flow for employers on our website before contacting us for review.

 

All the best!

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Philipi,

 

You can request a review of your eligibility for Cash Flow Boost (CFB) with us if your auditors believe that you are not eligible.

 

We will thank you for your transparency and If our review indicates that you are:

  • not eligible, no penalties/interest will be applied to any payment/overpayment. 
     
  • eligible, we will give you confirmation in writing based on the information used to make the decision.

We use information from your tax returns as well as other information on our systems to work out your eligibility. The cash flow boost will be automatically put into your accounts when you lodge your activity statements, so you don't have to apply for it.

 

So, it's best to discuss the matter with us before starting to refinance to pay us back.

 

Since the Cash Flow Boost has two phases, if you were eligible for CFB1, then you will also be eligible for CFB2, even though you did not trade or withhold any PAYGW during the period of CFB 2.

 

The CFB2 amounts will be equal to the total amount of initial cash flow boosts received and split evenly over the lodgments for the periods June 2020 to September 2020.

 

Please review the Eligibility companion guide for cash flow boost and Boosting cash flow for employers on our website before contacting us for review.

 

All the best!