Do you need to pay any tax on the Cash Flow Boost and Jobkeeper payments your business receives?

Tax on Cash Flow Boost and JobKeeper

The short answer is No and Yes.

Cash Flow Boost

The cash flow boost is NANE. You include it in your tax return but under non-assessable non-exempt income. So you declare it but you don’t pay tax on it.

JobKeeper

The JobKeeper payment is assessable income for you as employer. But it is also a normal wage expense when you pass the payment on to your employees. So it basically just comes in and goes out, offsetting each other.

For your employees the JobKeeper payment is assessable income. And so you need to do PAYG withholding on these payments. You can’t withhold any admin fees or other charges on their payment, but you must withhold tax as required. 

ATO

The ATO knows exactly how much they paid you and so best to get this right. Otherwise they might start wondering what else you are not telling them.

Please call me if you get stuck. 

 

MORE

Instalment Activity Statement

Small Business CGT Concessions

COVID-19 Help for Business

 

Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.

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Last Updated on 17 August 2020