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  • Boosting cash flow for employers

    The government is providing temporary cash flow support to eligible small and medium businesses during the economic downturn associated with COVID-19. This will be done through two sets of cash flow boosts delivered from 28 April 2020.

    Eligible businesses will receive a tax-free cash flow boost of between $20,000 and $100,000 through credits in the activity statement system when they lodge their activity statements.

    Your business is eligible if you meet all of these conditions. You::

    • employ staff
    • held an ABN on 12 March 2020 and continue to be active
    • have 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).

    Accessing the cash flow boost

    If you lodged your 2018–19 income tax return or an activity statement before12–March 2020, you do not need to apply for the cash flow boost. All you need to do is lodge your upcoming activity statements.

    The cash flow boost will be automatically credited to your activity statement account.

    You will not receive the cash flow boost before 28 April 2020, even if you lodge early.

    If you have not lodged your 2018–19 income tax return or activity statements with us, you may still be eligible. We will publish further information on our website shortly if this applies to you.

    If you have an activity statement lodgement deferral, you will still receive the cash flow boost – if you are eligible – at the time you lodge. This ensures that eligible entities that have received deferrals (e.g. due to recent natural disasters) still have the extended time to lodge and will not miss out on the cash flow boost.

    For further information on the new measure, including timing and calculating the cash flow boost, visit Boosting cash flow for employers.

    We continue to work through the best way to administer this cash flow boost and our website is the best place to find information.

    We understand your business may be under significant pressure at this time and we are working on getting the cash flow boost to you as soon as we can.

    See also:

    Last modified: 25 Mar 2020QC 61936