No. The cash flow boosts of between $20,000 and $100,000 are tax free and automatically calculated through your activity statements. If, however, you use the cash flow boost to pay a dividend to shareholders or make a trust distribution, the ATO state that there ‘may’ be tax consequences for the recipient. The cash flow boost is also not subject to GST as you are not making or agreeing to make a supply for the payment. For more detailed information with example circumstances click here.

What you must be aware of is the ATO will investigate your business if they believe your company has restructured, increased wages or entered into a scheme to become eligible for the cash flow boost payment, or to increase the payments. This will involve penalties and you will be required to pay back the amount in full.

To help you understand the cash flow boost payments and your eligibility, please email your enquiry through to Chloe: admin@taxproaustralia.com.au and one of our Taxpro accountants will be in touch. If you are already a client, please give your Taxpro accountant a call direct.