How Will the ATO Help Us During this Time?
The ATO is offering up all the goodies to help small business owners: Reversed Interest and Penalties. Flexible Payments. PAYG I Refunds, and PAYG W Credits.
Their #1 priority is keeping cash flowing both in and out of individuals and businesses’s hands, as well as keep Australians employed and working.
Monthly BAS Option for Quarterly BAS Lodgers
This is helpful if you usually get refunds when lodging your BAS. The ATO will also allow quarterly GST reporting businesses to opt into monthly GST reporting in order to get quicker access to GST refunds.
March 2020 PAYG Instalments Varied to Zero
Businesses will be allowed to vary pay-as-you-go (PAYG) instalment amounts to zero for the March 2020 quarter. This isn’t erasing tax debt, but instead is deferring payment. So keep in mind, you will still owe money to the ATO, but they will allow you to pay it to them later – after you lodge your tax return.
Interest and Penalties Remitted
The ATO will also look to remit any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities, and allow affected businesses to pay their existing and ongoing tax liabilities by allowing them to enter into low-interest payment plans.
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.
PAYG Withholding Credit for Employers
Helping small and medium businesses with aggregated annual turnover under $50 million to cover the costs of employee wages and salaries equal to 100 per cent of PAYG withheld for businesses that withhold tax, with a minimum of $20,000 and a maximum of $100,000 over six months. Businesses that pay salary and wages but are not required to withhold tax will also receive the minimum payment of $20,000.
Delay in Making Payments – As Long as You Ask First
The ATO will include up to a four-month deferral of the payment date of amounts due through the business activity statement, including PAYG instalments, income tax assessments, fringe benefits tax assessments and excise.
Want to Chat with the ATO?
Businesses can contact the ATO on its 1800 806 218 Emergency Support Infoline to discuss their situation.
**We have made every effort to ensure this information is accurate and correct at the time of publishing**
Want to Chat to an Accountant about your Unique Situation? Book in a meeting with our Super Star Tax Team here