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  • Cash flow boost tax time essentials

    If you've received a cash flow boost, you need to know how this impacts your tax return this year.

    There are four essentials when lodging:

    • You don't pay tax on the cash flow boost credits as they are non-assessable non-exempt income, but you may need to report the amounts in your tax return for other purposes. Refer to the relevant tax return instructions for your business structure for guidance.
    • You're still entitled to a deduction for the payments made to your workers provided you have complied with the pay as you go (PAYG) withholding and reporting obligations for that payment.
    • If you pass the cash flow boost on to others, such as dividends or a trust distribution, there may be tax consequences for the recipient.
    • If you claim the research and development (R&D) tax offset, your claim is not affected by any cash flow boost you receive.

    If you're still not sure, get in touch with a registered tax agent or BAS agent or contact us.

    See also:

    Last modified: 11 Sep 2020QC 63640