ATO details COVID-19 assistance
Deferred tax payments, penalty remissions and varied PAYG instalments are some of the administrative relief measures the Commissioner of Taxation has pledged to help businesses cope with the economic fallout from the coronavirus. Announced in the wake of the government’s $17.6 billion fiscal stimulus package, the ATO has now signalled a flexible approach in the way it will handle taxpayers’ affairs over the coming months.
The string of measures will include;
1. Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise.
2. Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to.
3. Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
4. Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
5. Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
Speaking at the Tax Institute’s annual Tax Summit, commissioner Chris Jordan said his office would do its part to help the community through a “harrowing” start to the year.
“Our message to businesses feeling the impact of the coronavirus is simply this: let us know. Reach out to us. We can help,” Mr Jordan said. “The ATO will work shoulder to shoulder with businesses to assist them through this difficult period and do what we can to ease the pressure.”
Unlike the bushfire relief measures, which applied automatically to particular geographic areas, assistance measures for those impacted by COVID-19 will not be automatically implemented.
Instead, businesses and their advisers will be required to contact the ATO on its 1800 806 218 Emergency Support Infoline to discuss their situation. Please contact our office if you require assistance.
If you wish to utilise these support measures, please don't hesitate to contact our office on (08) 7087 2162. |