Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020

SECTION 7   AMOUNT OF CASH FLOW BOOST  
First boosts

7(1)    
If an entity is entitled to a cash flow boost for a period covered by subsection 5(2) , the amount of the entity ' s cash flow boost for the period is:

(a) if the period is the first period for which the entity is entitled to a cash flow boost - the greater of $10,000 and the entity ' s withholding period total for the period; or

(b) otherwise - the entity ' s withholding period total for the period.

Caps on amount of first boosts

7(2)    
The amount worked out under subsection (1) must be reduced to the extent (if any) necessary to ensure that the sum of the entity ' s cash flow boost for the period, and its cash flow boost for any previous periods:

(a) does not exceed $50,000; and

(b) if paragraph (1)(b) applies - does not exceed the sum of the entity ' s withholding period totals for those periods.

Note:

This may result in that amount being reduced to nil.

7(3)    
For the purposes of subsections (1) and (2), treat an entity ' s withholding period total for a period that is the month of March 2020 as being 3 times the actual amount of that withholding period total.

Second boosts

7(4)    
If an entity is entitled to a cash flow boost for a period covered by subsection 6(2) , the amount of the entity ' s cash flow boost for the period is:

(a) if the period is a month - 25% of the total of the amounts of cash flow boosts to which the entity is entitled for periods covered by subsection 5(2) ; or

(b) if the period is a quarter - 50% of that total.

7(5)    
Subsection (6) applies if:

(a) both of the following requirements are satisfied:

(i) the period of the month of June 2020 applies to the entity under subsection 6(3) ;

(ii) the period of the quarter ending on 30 September 2020 applies to the entity under subsection 6(3) ; or

(b) both of the following requirements are satisfied:

(i) the period of the quarter ending on 30 June 2020 applies to the entity under subsection 6(3) ;

(ii) the period of the month of July 2020 applies to the entity under subsection 6(3) .

7(6)    
Despite subsection (4), the Commissioner may adjust the amount of the entity ' s cash flow boost for a period worked out under that subsection to ensure that:

(a) the total of the amounts of cash flow boosts to which the entity is entitled for periods covered by subsection 6(2) equals the total of the amounts of cash flow boosts to which the entity is entitled for periods covered by subsection 5(2) ; or

(b) the total of the amounts of cash flow boosts to which the entity is entitled for periods covered by subsection 6(2) does not exceed the total of the amounts of cash flow boosts to which the entity is entitled for periods covered by subsection 5(2) .