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

SECTION 5   ENTITLEMENT TO CASH FLOW BOOST - FIRST BOOSTS  

5(1)    
An entity is entitled to a payment (known as a cash flow boost ) for a period covered by subsection (2) if:

(a) any of the following requirements are satisfied:

(i) the entity makes a payment in the period and must withhold an amount from the payment under Subdivision 12-B , 12-C or 12-D in Schedule 1 to the Taxation Administration Act 1953 (regardless of whether the entity actually withholds the amount);

(ii) the entity must pay an amount under Division 13 in that Schedule in relation to an alienated personal services payment that it receives in the period (regardless of whether the entity actually pays the amount); and

(b) (Repealed by No 61 of 2020)

(c) the period applies to the entity under subsection (3); and

(d) any of the following requirements are satisfied:

(i) the entity was a small business entity or a medium business entity for the most recent income year for which there is an assessment in respect of the entity of a kind mentioned in subparagraph (a)(ii) of the definition of assessment in subsection 6(1) of the Income Tax Assessment Act 1936 ;

(ii) the Commissioner is satisfied on a reasonable basis that the entity is a small business entity or a medium business entity for the income year in which the period starts; and

(e) the entity notifies the Commissioner, in the approved form lodged with the Commissioner, of its withholding period total for the period; and

(f) either:

(i) the entity is an ACNC-registered charity at any time in the period; or

(ii) the entity had an ABN on 12 March 2020 (or a later time allowed by the Commissioner), and the requirement in subsection (5) or (6) is satisfied; and

(g) neither the entity nor any associate or agent of the entity has entered into or carried out a scheme or part of a scheme for the sole or dominant purpose of achieving any of the following:

(i) making the entity entitled to the cash flow boost for the period;

(ii) increasing the amount of the cash flow boost to which the entity is entitled (disregarding this paragraph) for the period.

5(2)    
The following periods are covered by this subsection:

(a) the months of March 2020, April 2020, May 2020 and June 2020;

(b) the quarters ending on 31 March 2020 and 30 June 2020.

5(3)    
A period applies to an entity if:

(a) for a period that is a month - the entity is a large withholder or a medium withholder for the month; or

(b) for a period that is a quarter - the entity is a small withholder for a month that starts in the quarter.

5(4)    
For the purposes of subsection (3):

(a) treat an entity that is a large withholder or a medium withholder for the first month in a quarter as being a large withholder or a medium withholder for each month in the quarter; and

(b) treat an entity that is a small withholder for the first month in a quarter as being a small withholder for each month in the quarter.

5(5)    
For the purposes of paragraph (1)(f), the requirement in this subsection is satisfied if:

(a) an amount was included in the entity ' s assessable income for the 2018-19 income year in relation to it carrying on a business; and

(b) the Commissioner had notice on or before 12 March 2020 (or a later time allowed by the Commissioner) that the amount should be so included.

5(6)    
For the purposes of paragraph (1)(f), the requirement in this subsection is satisfied if:

(a) the entity made a taxable supply in a tax period that applied to it that:

(i) started on or after 1 July 2018; and

(ii) ended before 12 March 2020; and

(b) the Commissioner had notice on or before 12 March 2020 (or a later time allowed by the Commissioner) that the entity had made the taxable supply.

5(7)    
For the purposes of subsection (6), in determining whether the entity made a supply (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999 ) that is a taxable supply:

(a) assume that the entity is registered (within the meaning of that Act); and

(b) assume that the supply is neither GST-free (within the meaning of that Act) nor input taxed (within the meaning of that Act); and

(c) for an entity carrying on business solely in the external Territories - assume that the external Territories are part of the indirect tax zone (within the meaning of that Act).