The cash flow boost (discussed in the April 2020 edition of TaxWise News) has been amended so that payment of an amount to the ATO where an alienated personal services payment is received gives rise to an entitlement to the cash flow boost.

An alienated personal services payment is, broadly, a payment received by a personal services entity (eg a company or trust) that is ultimately treated as forming part of the income of an individual under the personal services income (PSI) rules (and has not been promptly paid to the individual as wages or salary). The PSI rules are relevant if your services are hired out through a company or trust – please see more information on page 13.

No GDP adjustment to PAYG instalments for 2020-21

The GST and PAYG instalment amounts are usually adjusted every year using a formula known as the gross domestic product (GDP) adjustment.

A recent change in the law means there is no GDP adjustment to work out quarterly GST and PAYG instalment amounts for the 2020-21 income year. This change is in response to the COVID-19 pandemic.

Read our complete September 2020 Taxwise Individual Newsletter here