Businesses (including sole traders, companies, partnerships or trusts) and NFP organisations are eligible to receive the cash flow boost if they fit certain criteria. Please check for all the details here.
A suggested solution for entering the cash flow boost payment in HandiLedger and the manual updates required in HandiTax when using the automatic transfer from HandiLedger is listed below.
Example 1: Record a refund from the ATO as a result of the cash boost payment.
In our example, the GST Payable is $20,000, and the cash flow boost payment is $25,000. This results in a $5,000 refund from the ATO.
General Ledger Entries:
Dr GL code 3389 GST clearing/ATO Integrated Account $20,000
Dr GL code 2000 Cash at Bank $5,000
Cr GL code 0525 Assessable government $25,000 - ensure there is no GST code applied. There is no GST on the cash flow boost payment.
When using the functionality to transfer HandiLedger data to HandiTax, you are required to manually remove the amount of cash flow boost payment that appears on the report, as these payments are non-assessable, non-exempt.
Log in to HandiLedger and Select your entity and relevant year.
Click Reports, HandiTax Transfer. Use the search icon to find the tag ^BGL or BGL.
Double-click the amount reported at BGL to bring up the Edit the text in this cell window.
Delete the value and click OK. Click Yes, OK to save the changes.
In HandiTax, complete the import of the HandiLedger transactions.
Check that you have no amounts reported at Assessable government industry payments.
Manually allocate the amount to non-assessable, non-exempt income in the return.
Example 2: How to record a payment to the ATO that includes a cash flow boost payment.
In our example, the GST Payable is $20,000, and the cash flow boost payment is $15,000. This results in a $5,000 payment to the ATO.
General Ledger Entries:
Dr GL code 3389 GST clearing/ATO Integrated Account $20,000
Cr GL code 2000 Cash at Bank $5,000
Cr GL code 0525 Assessable government $15,000 - ensure there is no GST code applied. There is no GST on the cash flow boost payment
Repeat the instructions above to remove the amount of cash flow boost payment when transferring to HandiTax.