Who Will Benefit Most from the Cashflow Booster Payment?
The government is aiming to provide cashflow assistance to any Australian business who were up and running and withholding PAYG tax, before the corona-virus pandemic started.
Whilst this payment is designed to help all businesses with staff on the payroll, some Australian trade businesses are set to clean up off this incentive a lot more than others…
The First Cashflow Booster
SURPRISINGLY (this time) the biggest winners out of this are the small time Aussie Battler contractors operating on their own or with one or two staff members. HERE’S WHY…
At a BARE MINIMUM you’re in for a Credit of $10,000 on your March/Quarter 3 BAS return – no matter how little PAYG you withheld!
Or if you’re a big dog, you might be entitled to a credit of a up to $50,000 towards withheld PAYG tax from Q3 & Q4 (Jan-June 2020).
Like all good things… there is a catch of course!
You have to have been paying yourself as an “employee” for tax purposes and withholding PAYG prior to March.
If you haven’t been doing that, you’re still set to get a helping hand, but you won’t be up on the podium this time.
If you don’t end up accumulating $10,000 worth of PAYG for the ENTIRETY of those 2 Quarters (Jan 2020-June2020). It doesn’t matter!
The government is going to give you the minimum credit anyway, just out of the goodness of their tiny little heart!
But wait… there’s more!
If you somehow manage to defy the odds, slay the dragons and limp past the June 30 finish line with your business still in tact…
You’ll receive another cheeky credit of $10,000 from your mates down in Canberra!
That’s a lot of Avocados!
Now at this point, you may not be as excited by all of this as I am…
So, to help you put this into perspective, it basically means this…
From January 2020 to the end of June, your pre-tax salary is basically now your new NET salary.
LET THAT SINK IN …
There has NEVER BEEN a better reason to SMASH OUT as much work as possible!
What are you still reading this for?
Get out there and start building something… or painting something… or whatever it is your trade business does best…
There may never be another chance to earn tax-free income!
“What if I don’t have enough work on the go, cause clients are cancelling on me left right and centre and the phone’s stopped ringing?” I hear you ask…
Then GIVE US A YELL!
Due to the lack of advertising competition our clients are seeing better than ever returns on their ad spend!
Anyway, enough of the shameless self promotion… let’s push forward.
The 2nd biggest winners
Those who actually have staff on the books!!
… especially if your first quarter was a cracker!
It’s about time trade businesses who slog it out day after day and do the right thing by their tradesmen, and pay super and all that jazz get rewarded!
Here’s the deal…
You know that pesky thing you get every month or so… no not that! In fact… some of you get it every quarter.
It comes around about the time you feel like you’ve finally got a decent float happening in your trading account… then it hits you harder than a MAC truck and leaves you with less money in your bank account than the tip jar at your local fish n chip shop…
That’s right… the PAYG payment.
It’s basically like getting robbed AND going through a divorce AT THE SAME TIME…
Every single month!!
Fortunately, there’s now something you can do about it.
Follow these 3 simple steps to deal with your next PAYG statement…
- STEP 1: When your statement arrives in the mail, make sure you open it whilst sitting on the crapper to see how much you owe.
- STEP 2: As long as your March or Q3 PAYG statement says that you owe the ATO less than $50,000, go to STEP 3. If you owe more than $50,000 proceed to STEP 4.
- STEP 3: Wipe your ass with said PAYG statement and go about your day, because you won’t be needing it today… NICE!
- STEP 4: Enjoy paying $50,000 less than you normally would have. Go buy yourself a new ivory back scratcher.
But… the fun doesn’t stop there
Just like our previous benefactors, survive until June 30th with some sort of resemblance of a business and…
CONGRATULATIONS – You made it to round 2 BONUS ROUND!
You will now get the chance to relive this experience with the same amount of FREE CREDIT AGAIN… this time for the next statements you receive – April, May & June (Monthly Lodgers) & Q4 PAYG (Quarterly Lodgers)
This will be ANOTHER minimum $10,000 credit for your business, and up to $50,000 for you big dogs out there.
What is the moral of the story?
Do absolutely EVERYTHING YOU CAN to survive from now until the end of June.
Your future self will thank you for it!
And if you need more customers to make it happen, contact the good folk here at BOSS TRADIE.
Alright all you good tradies and tradie ladies, I’d love to keep on chatting, but I’ve got a PAYG statement to go and read!
If you haven’t already done so, get yourself a copy of our business cashflow booster calculator so you can see exactly what you’re entitled to get – you will automatically get sent the PRO version once it’s out – you’re gonna want this. Trust me.
As they say, knowledge is power.
If you enjoyed this article, you’re probably going to enjoy the next one too, which will be about Job Keeper payments, Apprentice Subsidy & Instant Asset Tax write off.
Sneak peak of the next tool:
- Calculate all the job keeper payments you’ll receive over the next 6 months.
- Calculate exactly how much of a rebate your will get from the apprentice incentive.
- Calculate how much you stand to save on your 2020 tax return due to the new $150,000 instant asset tax write off.
- More cool stuff.