The ATO has extended its package of tax assistance for people impacted by the bushfires in New South Wales, Victoria, Queensland, South Australia and Tasmania as part of the whole-of-government response to the disaster.
Taxpayers in impacted postcodes will now have until 28 May 2020 to lodge and pay their business activity statements and income tax returns. Impacted businesses that pay their PAYG instalments quarterly will also be allowed to vary these instalments to zero for the December 2019 quarter and claim a refund for any instalments made in the September 2019 quarter. The ATO estimates that 3.5 million businesses, individuals and self-managed superannuation funds will qualify for this extension.
- is fast tracking any refunds due to taxpayers in the impacted regions
- is remitting any interest and penalties applied to tax debts since the commencement of the bushfires that have been applied to accounts of individuals and businesses located in impacted regions
- will not be initiating any debt recovery action for those taxpayers in affected areas with a tax debt or outstanding obligation until at least 28 May 2020
- will consider releasing individuals and businesses from income tax and FBT debts if they are experiencing serious hardship.
Affected taxpayers can vary their income tax instalments to nil without penalties. This also applies if taxpayers end up in a tax payable situation for that quarter once they have lodged their tax return.
This document contains general advice only and is prepared without taking into account your particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should speak to a licensed financial advisor who should assess its relevance to your individual circumstances. While The Field Group believes the information is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the corporations Act 2001.