For taxpayers having financial difficulties as a result of the economic downturn caused by Coronavirus, the Australian Taxation Office (ATO) will provide support. This includes more time to pay their tax debt and payment plans that may have zero or low interest.
The Australian Taxation Office (ATO) will provide support to taxpayers affected by COVID-19. If clients are having financial difficulties due to the current business conditions, they can ask for more time to pay their tax debt or arrange for a payment plan that may have zero or low interest. This includes amounts owing on your activity statement.
Other assistance programs offered by the ATO include:
- Payment deferrals: If clients have been impacted by COVID-19, the ATO have undertaken to work with clients’ and their advisors to defer some payments and vary instalments due.
- Monthly GST credits: Businesses on a quarterly reporting cycle may elect to change their GST reporting and payments to be made monthly in order to gain quicker access to GST refunds that they are entitled to.
- Pay as you go instalment variations: The ATO is loosening the rules regarding variations. Businesses that vary their PAYG instalment rate or amount for the March 2020 quarter can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
- Remitting interest and penalties: Where your business is affected by COVID-19, the ATO will consider remitting interest and penalties incurred after 23 January 2020 that have been applied to tax liabilities.
- Superannuation guarantee payments: The ATO has advised that employers still need to meet their superannuation guarantee obligations, and that the ATO cannot vary the contribution date or waive the superannuation guarantee charge where super guarantee payments are late or unpaid.
By Brad Evans – YBMYates Baker McLean. Accountants and Business Advisors situated in the Central West of NSW. Offering comprehensive advice for all your financial needs including tax, auditing, business advisory, self managed super funds, specialised industry experience and financial planning.