Dealing with ATO obligations in these uncertain times – Covid-19 update
There are payment arrangements and concessions that exist for assisting you in meeting tax obligations going forward whilst dealing with Covid-19.
Phone us so we can work with you to make sure the options the ATO can provide are suitable for your situation and work for your business or personal circumstances.
There are payment arrangements and concessions that exist for assisting you in meeting tax obligations going forward whilst dealing with Covid-19.
Phone us so we can work with you to make sure the options the ATO can provide are suitable for your situation and work for your business or personal circumstances.
Click here for details on ATO arrangements
Remitting interest and penalties incurred after 23 January 2020
Question: My business has been affected by COVID-19. If I get an ATO debt now, will interest and penalties be remitted?
Answer: The COVID-19 remission applies to interest and penalties that were incurred on or after 23 January 2020.
Entering into a low interest payment plan
Question: What kind of low interest payment plan could I request?
Answer: The ATO are currently able to consider payment arrangements where interest stops being charged going forward while the payment arrangement is in place. Your payment arrangement will still need to be something you are able to comply with and that is acceptable to the Commissioner (in that you will be paying back your debt as soon as possible in the circumstances)
Adjusting an existing payment arrangement
Question: I am currently in a payment arrangement for my business debt but, due to the impact of COVID-19, I can’t keep paying instalments at the same rate. Can I get a change in my repayment rate or defer my next payment date?
Answer: Yes, the ATO can consider adjusting your repayments to something that is manageable within your current cash flow while ensuring you are paying back your debt as soon as possible in the circumstances. A low interest arrangement could also be available to help you address your debt.
Remitting interest and penalties incurred before 23 January 2020
Question: My business has been affected by COVID-19. Am I entitled to have all interest and penalties I currently owe remitted?
Answer: The COVID-19 remission only applies to interest and penalties that were incurred on or after 23 January 2020. It will not apply to interest or penalties that were already incurred before 23 January 2020. However, for debts you owed before 23 January 2020, the ATO can:
- Consider whether you your circumstances before 23 January 2020 would enable you to be granted a remission of interest and/or penalties
- Arrange to stop interest being charged while the COVID-19-affected period continues, and for the life of a payment arrangement if you put one in place.
How can we help?
If you need assistance with understanding any of these recent announcements, please feel free to give Brentnalls NSW a call so that we can discuss your particular requirements in more detail.
We are keeping our website up to date with new developments and information. This information can be found here.