Cash Flow Boost
In addition to the JobKeeper scheme, the state and federal governments have announced special measures to assist with short term cash flow issues, to help keep businesses (including charities) operating and to pay employees’ salaries.
In March, the federal government announced the Boosting Cash Flow for Employers measure. The initial cash flow boost under this measure is based on the amount of Pay As You Go withholding. Under the scheme, a tax-free cash flow boost of up to $100,000 total will be credited to eligible NFP entities, with a minimum credit of $20,000. However, for the initial period the maximum amount of credit available is $50,000, with additional credits available on a monthly or quarterly basis from June 2020, following lodgement of activity statements for PAYG withholding.
This measure is expected to benefit around 30,000 NFPs (including charities) and entities that employ workers, with an aggregated annual turnover under $50 million. Read the Treasury Factsheet for further information.