Tax consequences- Australian Cash Flow Boost
You do not need to pay tax on the amount of the cash flow boost. However, if you distribute the cash flow boost from the business to another entity (for example, making a trust distribution or paying a dividend to shareholders) there may be tax consequences for the recipient.
The amounts do not need to be paid back when your cash flow improves. However, if you have been paid more cash flow boosts than you are entitled to you will need to repay the excess.
The cash flow boost is not subject to GST as you are not making or agreeing to make a supply for the payment.
You will still be entitled to a deduction for PAYG withholding paid.
There is no effect on tax paid by employees in respect of their salary and wages.
Nortcity Accountants in SouthMorang will help all small business to get the CFB, based on their circumstances.
Contact our Tax Accountants, Julius/Winsly/Richa/Kris/Anton/Shan/Shahen/Raga on 03 9404 2737 or email firstname.lastname@example.org
Accountants & Tax Agents Pty Ltd t/s NORTHCITY ACCOUNTANTS