It’s almost tax time and, if sorting through a years-worth of receipts you’ve got stashed in those shoe boxes isn’t stressful enough… it’s stomach turning to think what you might owe and haven’t quite managed to put aside this last financial year. Well, it’s not like it’s been an easy one, right?
Perhaps you’ve been paying quarterly, or saving up in a high-interest bank account for the annual bill but – in any case – good news is at hand.
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.
At the National Small Business Summit in Melbourne, on June 10, Michael D’Ascenzo; Commisioner of Taxation said, “Nearly a third of the 2.5 million micro businesses in Australia have a tax debt and, notwithstanding some positive signs, we expect that number will increase in the coming months.
“Currently there are around 706,000 micro businesses with a turnover under $2 million that have a tax debt. In total they owe the ATO $6.5 billion. We have a ‘community first’ approach to debt which is about supporting the taxpayer in meeting their obligations and remaining viable.
“The earlier we engage with taxpayers, the better the chances of finding a suitable solution. We encourage those businesses that are struggling to contact us early to discuss their options.”
MEDIA RELEASE: If your business has an annual turnover of less than $2 million and you have an activity statement debt, you can apply for a twelve month general interest charge (GIC) free payment arrangement. Applications for GIC payment arrangements will be accepted from now until 30 June 2010.
You can also request a deferral of payment on your next activity statement. If you are experiencing short term cash flow problems and you pay your activity statement quarterly or annually, you may be granted a deferral of up to two months. If you pay your statement monthly, you may be eligible for a deferral of up to one month.
Read more on that here. Or contact the Australian Tax Office: Phone 13 11 42 from 8.00am – 6.00pm Monday to Friday.
