Cash Flow Boost - ATO Warning

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This new legislation was introduced into law with an integrity rule. Failure to abide by this rule can result in a business not being entitled to any amount of assistance where steps were taken with "the sole or dominant purpose of gaining access to the measure (or increasing the amount to be received under the measure)".

The ATO integrity measure outlined in the new legislation reads;
You will not be eligible for cash flow boosts if you (or a representative) have entered into or carried out a scheme for the purpose of:

  • Becoming entitled to cash flow boosts when you would otherwise not be entitled, or
  • Increasing the amount of the cash flow boosts

This may include restructuring your business or the way you usually pay your workers to fall within the eligibility criteria, as well as increasing wages paid in a particular month to maximise the cash flow boost amount.

Any sudden changes to the characterisation of payments made may cause us to investigate whether the payments are in fact wages. If the payments are wages, we may consider the characterisation of past payments, including whether they should have been subject to PAYGW and whether super guarantee contributions should have been made. You may also have FBT obligations that have not yet been met.

Please be mindful of the above when completing your activity statements. Feel free to contact our office if you have any questions.
 

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