ATO helps with Storm Financial fallout

The collapse of Storm Financial Limited has been cited among the reasons the Australian Taxation Office (ATO) has provided specialist assistance to businesses and individuals in the Cairns area.

The Taxation Commissioner, Michael D’Ascenzo, said that Cairns had been identified as requiring assistance due to: high unemployment; a significant number of small businesses with outstanding tax debts; the economic climate impacting on the local building industry, restaurants and tourism; and “the negative impact on local investors with the failure of Storm Financial”.

Addressing a Council of Small Business summit in Brisbane, D’Ascenzo announced the ATO would be extending the arrangements it put in place to help Australian small businesses through the global financial crisis — including the 12-month interest free payment arrangement and deferral of activity statement payment due dates.

However, he said businesses would need to be willing to enter into direct debit arrangements with the ATO. He added that the ATO would expect the businesses to reciprocate by seeking to put their tax affairs in order as soon as possible.

D’Ascenzo also said the ATO would be focusing on employer superannuation obligations as part of its compliance regime for the new financial year and expected to take action on over 17,500 employee complaints about unpaid super.

He promised compliance reviews of industries and employers showing a pattern of non-compliance, including the road freight transport, automotive repair and electrical services industries.