Updates to PAYG Withholding Credits

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Updates to PAYG Withholding Credits

Carmen Lawson • March 31, 2020

Update to prior announcements regarding PAYG Credits on BAS's

What I am talking about here is the credit on your PAYG Withholding for employers (which every employer will get).

FOR QUARTERLY LODGERS THAT THEIR MARCH 2020 PAYG WITHHOLDING IS LESS THAN $10,000

What you will get is:

1. $10,000.00 as a credit on your ATO Activity Statement Account upon lodgement of your BAS (or the 28th April)
2. $5,000.00 as a credit on your ATO Activity Stement Account upon lodgement of your June 2020 Qtr BAS in July 2020 (or the 28th July)
3. $5,000.00 as a credit on your ATO Activity Statement Account upon lodgement of your September 2020 Qtr BAS in October 2020 (or 28th Oct)

It doesn’t matter what you report on your June & September Qtr’s BAS’s – so long as your business is still active.

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FOR QUARTERLY LODGERS THAT THEIR MARCH 2020 PAYG WITHHOLDING IS MORE THAN $10,000.00

What you will get is:

1. A credit for 100% of your PAYG Withholding reported for the March Qtr due April 2020 – Lets say for example its $12,000.00
2. I think a credit will come through of 100% of your PAYG Withholding reported for June Qtr (eg say $13,000) plus and additional credit of 50% of the March & June 2020 Qtr PAYG Withholding due July 2020 – so this would be $13,000 + 12,500
3. A credit of 50% of the March 2020 & June 2020 Qtr PAYG Withholding per above on the September 2020 BAS due Oct 2020 – so this would again be $12,500 – bringing the total to $38,000 as an example.

It doesn’t matter what you report on your June & September Qtr’s BAS’s – so long as your business is still active.

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FOR MONTHLY LODGERS

What you will get is (get ready for this ride):

1. A credit of 300% of your March 2020 months reported PAYG Withholding due April 2020 (so whatever March’s month of PAYG Withholding was x 3 will be your credit)
2. A credit of 100% of April 2020 months PAYG Withholding for April 2020’s IAS due May 2020
3. A credit of 100% of May 2020 months PAYG Withholding for May 2020’s IAS due June 2020
4. A credit of 100% of June 2020 months PAYG Wihholding for June 2020’s BAS due July 2020
5. A credit of 25% of all of the above added to June 2020’s BAS due July 2020
6. A credit of 25% of all of the above for July 2020’s IAS due Aug 2020
7. A credit of 25% or all of the above for Aug 2020’s IAS due Sept 2020
8. A credit of 25% of all of the above for September 2020’s BAS due October 2020

The first 4 above is maximized at $50,000 – so the credits stop at $50,000 and then the following four will be maximized at $12500 per quarter.

*Disclaimer - All information posted in this update is true and correct at the time of posting. Legislation surrounding this situation is constantly changing. We will provide additional updates as required upon further government announcements or legislation changes. *

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