Accessing the cash flow boosts- Review by Julius Mather
To access the cash flow boost, you must lodge your activity statement for PAYGW.
If your business is a large withholder for PAYGW purposes, you should continue to pay your PAYGW to us as normal. To receive the cash flow boost, you must lodge the activity statement for your other obligations (such as GST).
What you will receive
The cash flow boosts will be applied to reduce liabilities arising from the same activity statement.
To support eligible entities during the period associated with COVID-19, any excess credit from the activity statement that received the cash flow boost amount will be refunded to you, rather than offset against any other tax debts you have. However, excess amounts may still be applied against any outstanding debts with other Australian Government agencies.
You may also receive a refund if you overpay your activity statement because your system was unable to take the cash flow boost into consideration when working out how much was payable.
If you are due to receive a refund, we will generally pay it within 14 days.
Example – refund of cash flow boost
When Sarah lodges her activity statement for the month of March 2020 she owes:
PAYG withholding of $15,008
GST of $9,704.
She also owes $4,500 from her February 2020 activity statement.
Sarah’s initial cash flow boost for the March activity statement is $45,024. This is used to pay the March activity statement liabilities of $24,712 ($15,008 + $9,704). She will be left with a remaining cash flow boost of $20,312.
To support Sarah’s business during this period, the cash flow boost of $20,312 will not be used to pay her outstanding liability of $4,500 from the February activity statement. Instead it will be paid to Sarah as a refund.
Accountants & Tax Agents Pty Ltd