If you’ve received a cash flow boost, you may be wondering if the amounts you’ve received affect your income or deductions this tax time.
Here are the four essentials you need to know when lodging your tax return:
- You don’t pay tax on cash flow boost amounts as they’re non-assessable non-exempt income:
- You may still need to report the amounts in your tax return for other purposes.
- Read the relevant tax return instructions for your business structure for more information.
- You’re still entitled to a deduction for the payments made to your workers provided you have complied with the pay as you go (PAYG) withholding and reporting obligations for that payment.
- If you pass the cash flow boost on to others, there may be tax consequences for the recipient.
- If you claim the research and development tax offset, your claim isn’t affected by any cash flow boost you receive.
Remember, a registered tax agent like Carrick Aland can help you with your tax.
If you’re having difficulty meeting your tax and super obligations because of COVID-19, contact our team in Dalby, Toowoomba or Chinchillla on 07 4669 9800.
Source: Know your boosts inside and out. (2020). Retrieved from https://www.ato.gov.au/Newsroom/smallbusiness/Employers/Know-your-boosts-inside-and-out/