Twelve months ago (due to the Global Financial Crisis) the Federal Government instructed the Australian Taxation Office to give small businesses a bit of a ‘break’ if they were having trouble paying their Business Activity Statement debts.
There are two interest-free programs in place, however they have not been broadcast widely and to access them, you must ask. Both programs are scheduled to end shortly.
They are:
- Twelve-month interest-free payment arrangements; and
- Deferred activity statement payment due dates
Twelve-month interest-free payment arrangements
Small businesses with an activity statement debt have until 30 June 2010 if they wish to apply for an interest-free payment arrangement or renegotiate an existing (pre-1 Jun 09) BAS payment arrangement.
Interest will be waived for a maximum period of 12 months, provided the payment arrangement is adhered to.
To be eligible a business must:
- have an annual turnover of less than $2 million
- have an activity statement debt, and
- negotiate a mutually acceptable payment arrangement with the ATO that is entered into between 1June 2009 and 30June 2010
To apply, phone the ATO on 13 11 42 or ask your Tax Agent to make the request on your behalf. You will need to have your BAS lodgements up to date and you will need to provide a reason for the request.
Deferred activity statement payment due dates
Small businesses can also request a deferral of payment on their May and June 2010 activity statements. Businesses with short-term cash flow problems that pay quarterly may be granted a deferral of up to two months, with those that pay monthly eligible for up to one month.
Activity statements still have to be lodged on time, however, no interest applies for the period of the deferral.
To be eligible a business must:
- have an annual turnover of less than $2 million,
- have an activity statement that is required to be lodged but is not yet lodged, and
- make the payment deferral request on or before the original due date (the actual date for an activity statement may vary between taxpayers depending on a number of factors, such as whether lodgment is made by a tax agent).
To apply, phone the ATO on 13 11 42 or ask your Tax Agent to make the request on your behalf. You will need to have your BAS lodgements up to date (except for the current one) and you will need to provide a reason for the request.
