With drought, bushfires and flooding, it has been a terrible start to 2020 for a lot of Australian businesses. The Australian Taxation Office (ATO) has extended its tax assistance package for people impacted by the bushfires in NSW, Queensland, South Australia and Victoria.
The approximately three and a half million businesses, individuals, and self-managed superannuation funds who have been impacted by the natural disasters have until 28 May 2020 to lodge and pay business activity statements, income tax returns, SMSF, FBT lodgements and their associated payments.
Additionally, the ATO is fast tracking any refunds that are due to taxpayers in the impacted regions. The ATO will also be remitting any interest and penalties applied to tax debts, since the commencement of the bushfires, to accounts of individuals and businesses located in impacted regions.
The best part about the package is that taxpayers do not need to apply for a deferral, a faster refund, or remission of interest or penalties. This will be automatically done by the ATO. There is a list of impacted postcodes for automatic deferral. However, if a postcode is not on the list, you can call the ATO’s Emergency Support Infoline on 1800 806 218.
For people who have had documents destroyed by the bushfires, the ATO will assist by reissuing documents it has on hand like income tax returns and activity statements. If your client’s records cannot be reconstructed, the ATO will accept a reasonable estimate. However, each client will have to provide a signed letter declaring their estimate is true and correct. There is a reasonable estimate pro-forma that must be completed.
For taxpayers in affected areas 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 fringe benefits tax debts if they are experiencing serious hardship.
Find out more about the support taxpayers affected by the bushfire can receive by watching Effective PD’s webinar on Bushfire Relief. This webinar also covers another topic, which is Car Parking Fringe Benefit. Subscribe to Effective PD at www.effectivepd.com.au.
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