Stage 2 Government economic stimulus – NFPs to receive cash payments up to $100,000

The Government recently announced a second-stage economic stimulus package to support NFPs, businesses and individuals in the face of the Coronavirus pandemic.

The good news is that under these measures, for-purpose organisations that employ people will receive an untied cash payment of up to $100,000. That is up to $50,000 in this financial year, and $50,000 next financial year. These stimulus payments are being referred to as “cash flow assistance for businesses”, and by some commentators as the “PAYG payments”.  The PAYG reference is linked to the means of calculation, which is based on your regular PAYG tax withholding for staff.

Our initial calculations are showing that most organisations employing 7 full time staff (and some with fewer), are likely to receive the full $100,000*

This is the key benefit available to NFPs under the stimulus package. Other measures announced by the Government will not apply to non-profits (e.g. changes to the instant asset write-off threshold and accelerated depreciation for investments).

During this most difficult time, we wanted to let you know that these stimulus payments will very likely benefit your organisation. We understand that you will want detailed information about exactly what payments your organisation will receive, how they will be credited to you, and when. Purpose is currently undertaking these detailed estimations for each of our clients and we will be in touch as soon as these are finalised.

For more information in the interim, please visit the Treasury website.

*There are a range of factors that impact PAYG withholding rates at your organisation, including: salary rates; utilisation of salary sacrifice; and number of pay periods falling within the assessed period.  

2020-04-02T00:52:39+00:00 March 25th, 2020|NFP sector, Purpose Accounting team|