The start of this new financial year is going to be quite different compared to years past when most of us were living a different type of life.
However, what shouldn’t change is prioritising the lodgment of your June activity statement. That’s because additional cash flow boosts are being credited from June to help retain staff, cover business costs and assist with cash flow.
If you received initial cash flow boosts, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020.
The amounts will be equal to the total amount of initial cash flow boosts you received and will be split evenly over your lodgments. If you lodge:
- quarterly, you’ll receive 50% of your total initial cash flow boost for each activity statement
- monthly, you’ll receive 25% of your total initial cash flow boost for each activity statement.
You may also receive the last part of your initial cash flow boost when you lodge in June. This would happen if you haven’t received up to the maximum credit amount of $50,000.
For example, Linda has employees and withholds from their wages. She is eligible to receive the cash flow boost. When she lodges her quarterly activity statements she reports withholding as follows:
- March 2020 – $12,000
- June 2020 – $2,000
- September 2020 – $0.
When she lodges her activity statements, Linda will receive cash flow boost credits of:
- March 2020 – $12,000 from the initial cash flow boost
- June 2020 – $2,000 from the initial cash flow boost plus $7,000 from the additional cash flow boost
- September 2020 – $7,000 from the additional cash flow boost.
When lodging your June activity statement, the ATO has three things you should to do to ensure you receive your boost.
1. Ensure you have provided all relevant information to the ATO
If you didn’t automatically receive the initial boost when you lodged your activity statement, it doesn’t mean you’re not eligible. The ATO may simply need some additional information to determine your eligibility. The ATO have an Eligibility companion guide, which provides an overview on how they work out eligibility and the next steps you can take.
2. Make sure your financial institution details are up to date
If the ATO have incorrect details, it will create delays in receiving any refunds you may be entitled to. The easiest way to check your financial details is by using the ATO’s online services.
3. Keep your pay as you go withholding registration
It’s important you keep your pay as you go withholding registration until you’ve received the additional cash flow boosts. If you’ve stopped making payments since receiving the initial cash flow boosts, report ‘0’ for amounts withheld in your activity statement.
For more information visit the ATO website at www.ato.gov.au/cashflowboost