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?
If you’re looking for assistance in managing the risks associated with the impact of COVID-19 to build a resilient business, contact us on 1300 888 803 to book a catch up with a Modoras professional.
IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (VIC) Pty Ltd ACN 145 368 850. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (VIC) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (VIC) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (VIC) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (VIC) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.