Commissioner of Taxation Mr Chris Jordan said the 3.5 million businesses, individuals and self managed super funds (SMSFs) in the impacted local government areas will have until 28 May 2020 to lodge and pay BASs and income tax returns. This additional time is on top of the two-month extension previously granted.
For taxpayers with a tax debt or outstanding obligation, the ATO will not initiate debt recovery action until at least 28 May 2020. Taxpayers can also request payment arrangements for outstanding debts. The ATO will also consider releasing individuals and businesses from income tax and FBT debts if they are experiencing serious hardship. However, employers still need to meet their ongoing super guarantee (SG) obligations for their employees.
The ATO will recognise the ongoing effects of this disaster, such as cash flow problems for business owners who have suffered reduced trade. This includes businesses that are not located in the identified regions. The ATO also recognises that there may be situations where additional support or extensions may be required on a case-by-case basis beyond the automatic deferrals announced.
If you would like to know more please contact one of our accountants on 07 4639 1099 or come in and see us at 14 Russell Street Toowoomba.