ATO provides assistance to small businesses with tax debts
With over a quarter of all small businesses carrying a tax debt, the Australian Taxation Office (ATO) has introduced new measures to help those experiencing difficulties.
Businesses with an annual turnover of less than $2 million and an activity statement debt will be offered a 12 month general interest charge (GIC) free payment arrangement and have the payment date for activity statements deferred, tax commissioner Michael D’Ascenzo explained in a speech to the Council of Small Business of Australia.
D’Ascenzo said there was a need to differentiate those businesses likely to remain viable if given reasonable latitude from those unlikely to survive the downturn.
“We don’t 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,” D’Ascenzo said.
However, D’Ascenzo advised that the new measures would not disadvantage the majority of businesses that are keeping on top of tax responsibilities.
“We will continue to balance support for struggling businesses with our ongoing efforts to ensure a level playing field,” D’Ascenzo said.
According to the National Institute of Accountants chief executive Andrew Conway, there are around 1.9 million small businesses, which contribute around 30 per cent of Australia's economic activity.
"This makes them an integral part of our economy," Conway said.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
