Institute of Certified Bookkeepers

Will the cash boost be used to pay off other ATO debts?

The Short Answer is NO it is not supposed to.

The longer answer is that Treasury and Governments intent is to have cash paid to the Employer. 

The concept is that it will not be used to offset amounts that are not yet due, or have been deferred, or are subject to a payment plan.


The ATO have outlined the two scenarios depending on when the BAS is lodged. 

The Client has an existing Activity Statement debt of $1k owed to the ATO.  Income tax debt is NOT considered nor effected for this purpose.

1/ If the BAS is lodged before the 28th April (or when the system upgrade is delivered)

If you lodge a BAS that has a $3k refund but you have a $1k debt on the account, normal ATO process will refund the balance of $2k.

When the $10k becomes available (following 28th April) the ATO will then refund the additional $10k of the CashBoost.

Status:  $12k cash refund paid and no remaining activity statement debt.

2/ If the BAS is lodged after the 28th April (or the system upgrade is delivered)

You lodge the BAS with a $3k refund, the ATO will refund the full $3k and also refund the cashboost amount of $10k.

Status:  $13k cash refund BUT a remaining Activity statement debt of $1k

It would appear that in scenario #1 above any credit from the BAS will also be used to offset payment plan amounts etc.
But the $10k will still be paid.

Noting that the ATO have stated any remaining credit will not be swept into paying off any amount in the income tax account and that remaining credit will be available to be refunded.

NOTE:  JobKeeper amounts are being paid direct to the Employers nominated bank account and not through the ATO Accounts.

All Frequently asked questions and constant updates provided at

  • 15 April 2020