Scott Morrison announced on Thursday a stimulus package in response to Covid-19. The package includes a grant of UP TO $25,000 to support small businesses who pay wages to employees.
Here is what you need to know about the $25,000 grant:
- To be eligible your business must pay wages between 1 January 2020 and 30 June 2020 and have an aggregate turnover of less than $50 million (based on prior year figures)
- The grant will be 50% of the amount paid in withholding tax (W2 amount on the BAS form) from 1 January 2020 to 30 June 2020
- The grant has a maximum cap of $25,000. If you pay more than $50,000 in withholding tax between 1 January 2020 and 30 June 2020, the amount won’t increase above the limit. If, for example, you pay $10,000 in withholding tax from 1 January 2020 to 30 June 2020 you will receive a $5,000 grant payment
- The grant will be paid automatically via the ATO when BAS’s are lodged.
- The grant may act to credit any tax payable if amounts are owing on ATO accounts
- Business paying any wages at all between 1 January and 30 June will receive a minimum grant of $2,000
- The payment is tax free
**UPDATE: This grant was superceded by Coronavirus Economic Response Package Omnibus Bill 2020 on 23 March 2020. For updated information please visit our Covid-19 resources page.
If you need any further information, or wish to discuss how the grant will apply to your business, please don’t hesitate to contact us.