Are cash flow boosts for employers taxable?

Cash flow boosts from the ATO to support small and medium businesses and not-for-profit organisations during the economic downturn associated with COVID-19, are not taxable. This is unlike Job Keeper payments which are.

Businesses that are eligible to receive the cash flow boost will receive between $20,000 to $100,000 by lodging their activity statements up to the month or quarter of September 2020.

The cash flow boosts are delivered as credits in the activity statement system. They will generally be equivalent to the amount withheld from wages paid to employees for each monthly or quarterly period from March to June 2020.  

When preparing company returns, there is a label for cashflow boost which means you can put it in your financials, which looks better for banks and shareholders, which is not to be underestimated.

Please check with your local TaxAssist Accountant if you need help and advice with any of the above. During these uncertain times, using our expert services has never been more important to help you and your business survive and thrive.

Date published 3 Sep 2020 | Last updated 3 Sep 2020

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.