The second stimulus package will build on the tax free cash payments announced in the first package, with both thresholds and payment amounts increasing.
SME employers, including not-for-profit and charities with aggregated annual turnovers of under $50 million will be eligible for tax-free payments of up to $100,000 per employer. The payments will be delivered in two phases – the first phase will equal 100 per cent of the PAYG withheld on salary and wages for the period January – June 2020 up to a maximum of $50,000, and will be paid following lodgement of the March and June quarter activity statements.
To qualify for the second phase of payments, the entity must continue to be active. The second phase of payments will be made following lodgement of the June and September quarter BAS's and each second phase payment will be equal to half of the total first phase payments
Eligible businesses that pay salary and wages but are not required to withhold tax will receive a total minimum payment of $20,000, up from $2000 in the first package. The first payment of $10,000 will be available from 28 April 2020 and, will be paid as a credit to the business upon lodgement of the March quarter activity statement, with a second payment of $5,000 paid upon lodgement of the June quarter activity statement and a final payment of $5,000 paid upon lodgement of the September quarter activity statement.
Monthly activity statement lodgers will begin to receive their payments from 28 April 2020.
The payments are tax free, there will be no new forms and payments will flow automatically through the ATO. The payments will only be available to active eligible employers established prior to 12 March 2020, with the exception of charities who will be eligible regardless of when they were registered.