An important part of the Federal Government's economic
response to the COVID-19 pandemic is the Cash Flow Boost. Under
this scheme, employers with a turnover of less than $50 million are
eligible for a refund of their employees' tax instalment
deductions up to a maximum of $100,000 – tax free.
For quarterly BAS lodgers the scheme works by providing a refund
of tax instalment deductions for the March 2020 quarter of up to
$50,000. Where the full $50,000 is not able to be utilised in the
March quarter, the balance can be carried forward and used in the
June quarter.
A further refund of half that amount is then allowed for each of
the June and September 2020 quarters.
The minimum amount of cash flow boost for the March quarter is
$10,000. Therefore where a microbusiness has a small number of low
paid employees, it may well receive a cash flow boost that is far
in excess of its actual tax instalment deductions. Such a business
will not be eligible to receive any
