Please see below for details of how the payg credit works and the process we will follow to ensure the maximum assistance is claimed.

The payg credit is provided over several BAS periods

First Credit

The first credit will apply to the March 2020.

The first credit will be a minimum of $10,000 and will be up to $50,000.

If you lodge monthly BAS’s or IAS’s, the first credit will be calculated as three times the payg.

Additional Payments

The additional payments will be applied to the June and September BAS’s or if you lodge monthly, the June, July, August and September BAS’s or IAS’s.

Each additional payment will be 50% of the first credit.

The total of the two additional payments will equal the amount of the first credit.

Example 1

You lodge quarterly BAS’s.

Your March BAS has payg withheld of $15,000.

The first credit will be for $15,000 in the March BAS.

The second credit will be for $7,500 in the June BAS (50% of the initial credit).

The third credit will be for $7,500 in the September BAS (50% of the initial credit).

Example 2

If your quarterly payg is less than $10,000, you will receive payg credits of $10,000 in the March quarter, $5,000 in the June quarter and $5,000 in the September quarter.

If this results in a refund, you will receive the credit as a cash refund from the ATO once each quarter’s BAS is lodged. The ATO processing time is stated as 14 days.

Example 3

Quarterly payg is $70,000.

The first credit will be for $50,000 for the March BAS.

The second credit will be for $25,000 for the June BAS (50% of the initial credit)

The third credit will be for $25,000 for the September BAS. (50% of the initial credit)

Eligibility

Businesses and not for profit entities with a turnover of less than $50M pa and that employ workers and that were active employers established prior to 12 March 2020 will be eligible. No other eligibility criteria has been provided.

Processing

The credit will be processed through the BAS system once your BAS is lodged and applied to the payg that is reported in the BAS.

If the credit results in a refund, this will be processed within 14 days.

Sole Traders and Partnerships

Sole traders and partnerships can not pay themselves wages and thus will not receive payg credits for amounts relating to their drawings. However, if they employ staff, they should receive the $20,000 payg credit spread over the 3 quarters.

Other Government Assistance

Details of other government assistance will be provided once they come to hand. At the moment, there is little detail about the government loan package that was announced yesterday.