As you all know – when the March BAS 2020 is lodged, if there is a value in W1 – a payment of $10,000 or more of a tax free rebate is paid to the businesses’ RBA Account. You didn’t have to apply or do anything special – it would just happen.
It was noted however that if you were paying directors fees – which are typically not entered on a BAS until your tax agent has calculated the directors’s fee along with any Div 7a loan payments and dividends – and thus appears only on the June BAS.
I received information this morning that suggests the following:
If you typically are paid directors fees:
- Do not change earlier BAS’s to include Directors fees in W1 if you haven’t been doing that already.
- Do not put Directors fees into the March 2020 BAS if you only ever record them normally in the June BAS.
- DO ensure that you put the Directors fees, along with associated PAYG withholding in the June BAS.
- DO ensure that if you have put in directors’s fees in the June BAS that you calculate and pay the associated SGC Superannuation in July 2020.
It was explained that in a company that has no employees – but pays Directors fees but once a year in the June BAS to continue to do this. The June BAS then will trigger both the Boost 1 and Boost 2 payments at the same time. It will just be that the first Boost payment will be late.
Personally I am glad to know that whilst it might be later than others – at least Directors fees are being recognized and the Boost payments being paid.