New Tax Office measures to assist small business stay on top of tax debt

The Tax Office has announced new measures to help businesses with an annual turnover of less than $2 million, that are struggling to manage their tax debts in the current economic climate.

The Tax Commissioner yesterday announced the following measures to help small businesses:

• Twelve month general interest charge (GIC) free payment arrangements
  
  Businesses with an annual turnover of less than $2 million with an activity statement debt can apply for a GIC free payment arrangement from now until 30 June 2010. They will have the GIC remitted for a maximum period of 12 months, provided the payment arrangement is maintained.
• Deferred activity statement payment due dates
  
  Small businesses can also request a deferral of payment on their next activity statement.
  Businesses with short term cash flow problems that pay quarterly and annually may be granted a deferral of up to two months, with those that pay monthly eligible for up to one month.  Activity statements still have to be lodged on time, however, no interest applies for the period of the deferral.

With over a quarter of small businesses carrying a tax debt, the ATO has introduced these measures to help those small businesses that are struggling to meet their tax obligations.

For further information and assistance with applying for an extension or negotiating an interest free payment arrangement, please contact our office on 03 9869 5900.