COVID-19: Boosting Cash Flow for Employers

Boosting Cash Flow for Employers

Small and medium sized entities that employ staff with an aggregated annual turnover under $50 million are eligible for credits on their BAS.  Those businesses that employ staff between 1 January 2020 and 30 June 2020 may be eligible.  It is anticipated the credit will be the amount of the PAYG Withheld from Staff Wages during the six month period up to $50,000. The tax-free credit will be calculated by the ATO as an automatic credit on the activity statement.

Wages subsidies for apprentices and trainees

Employers with less than 20 full-time employees, who retain an apprentice or trainee (who was in training with the employer as at 1 March 2020) may be entitled to Government funded wage subsidies.  These will be equal to 50% of the apprentice’s or trainee’s wage paid during the nine months from 1 January 2020 to 30 September 2020.  The maximum wage subsidy over the nine-month period will be $21,000 per eligible apprentice or trainee.  Employers can register for the subsidy from early April 2020 with the training organisation they use.

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