In response to COVID-19 , the Australian Tax Office has created possible ways for taxpayers to obtain tax relief through applications made directly with the ATO.
What relief is available from the ATO?
The ATO may allow some payments to be deferred. This may include GST, PAYG instalments, FBT and excise payments for up to six months.
Taxpayers can vary their quarterly PAYG installment for the March 2020 quarter. The ATO has advised penalties will not apply and interest would not be charged to varied instalments for the 2020 income year.
Taxpayers may be eligible for quicker access to GST funds if changing from quarterly to monthly reporting.
If the change is made immediately, the first monthly tax period would start on 1 April 2020.
The ATO may remit interest and penalties incurred after 23 January 2020.
The ATO may be prepared to enter into ‘low interest’ payment plans.
With regards to superannuation, the ATO does not have the power to defer or vary superannuation contribution dates and cannot waive the superannuation guarantee charge. Taxpaying employers will need to meet their compulsory superannuation obligations.
How do you apply?
Taxpayers will need to apply to the ATO for relief directly. It will be important to explain how COVID-19 is affecting the business and how the relief requested will provide assistance.
Want to learn more?
Read our blogs on the new stimulus package update here:
We’re here to support you through the changes. From making the most of the stimulus initiatives, through to managing the risks associated with the impact of the Coronavirus, the Modoras team is here to help you build a resilient business. Make well-informed business decisions; contact us on 1300 888 803 book a catch up with a Modoras professional.
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