Government Incentives for COVID-19 – Practical Example based on Employee $60K

This is a worked example on a really small business and the scenario sees Sammy’s Solar Installations Pty Ltd receive almost $40,000 in government incentives.

The government has come out with some great incentives for small business, to help you through these uncertain and challenging times. Here at Paris Financial we are continuing to have many conversations with our clients regarding the incentives, what applies to their business and personal circumstances and the plan moving forward for them.

Below is a worked example of an affected small business dropping by 40% with an employee earning $60,000 pa:

JobKeeper Scenario

The business Sammy’s Solar Installations has dropped by 40%, this allows the business to take advantage of JobKeeper and try to keep this employee earning $60,000 employed and the business ticking over whilst this crisis is on.

Employee’s Fortnightly Pay

Gross Wage $2,307
Less Tax ($427)
Net Pay $,1880


How JobKeeper works with the above scenario, is the employer continues to pay the Gross Wage $2,307 to their employee every fortnight via their single touch payroll system – this is why your bookkeeper is vitally important. The government will comeback via JobKeeper and kick you back as the employer $1,500 of the $2,307, so as an employer you are out of pocket $807 for the fortnight.

For the employee on $60,000, you will still need to pay their superannuation for the fortnight, which is 9.5%  = $219 based on the gross wage of $2,307 per fortnight.

If Sammy’s Solar Installations Pty Ltd is down for the entire 6 months, then the business gets back just a touch under $20,000 to support that employee for the period of April to September.

Cash Flow Boost Scenario

The Cash Flow Boost was one of the original stimulus packages and runs through PAYG withholding tax. Basically in simple terms, the business will receive $10,000 for the period from 1 January to 30 June, and then another $10,000 from the period from 1 July to 30 September. Through the Cash Flow Boost, again using PAYG withholding tax, the business will get back $20,000. Once again, your bookkeeper is key because lodging the PAYG withholding tax for the cashflow boost is done through your BAS.

Cash Flow Boost

$10,000 1 January to 30 June 2020
$10,000 1 July to 30 September 2020


This is a worked example on a really small business and the scenario sees Sammy’s Solar Installations Pty Ltd receive almost $40,000 in government incentives for the period of 1 January to 30 September by utilising JobKeeper and Cash Flow Boost to support the business and support and hold onto their valued employee.

If you need more information on this, contact our office for more details and more clarification around dates.


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