You are here: Home / News & Media / News & Info

Tax Office’s new measures to help small businesses

Thursday 18 June, 2009 The Commissioner has recently announced two 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. 

Measure 1: 12 month General Interest Charge (GIC) free payment arrangements

According to the Commissioner, small businesses with an activity statement debt can apply for a GIC free payment arrangement with the Tax Office from now until 30 June 2010. The Tax Office will have the GIC remitted for a maximum period of 12 months, provided the payment arrangement is maintained.

Measure 2: Deferred activity statement payment due dates

Small businesses will also have the opportunity to request a deferral of payment on their next activity statement. Eligible businesses with short term cash flow problems that pay quarterly and annually may be granted a deferral of up to two months, while those that pay monthly eligible for a deferral of up to one month.  

NOTE: The Tax Office still requires small businesses to lodge their Activity Statements on time, however no interest will apply for the period of the deferral.

According to the Commissioner, more than a quarter of small businesses are struggling to meet their tax obligations due to the impact of the current economic crisis. The Commissioner has stated that the Tax Office did not want the GIC or temporary cash flow problems to be the deciding factors between a business surviving and being able to meet its tax and superannuation obligations or becoming insolvent.  

Small businesses are urged to contact the Tax Office as soon as possible on 13 11 42 to discuss their circumstances so that a sustainable interest free payment arrangement can be negotiated.