Confronted with a worldwide emergency, the Australian Government has established a series of measures to help those who are experiencing financial difficulty. The Australian government revise taxes in difficult situations and the coronavirus emergency is one of these.
We made a tax guide for the coronavirus pandemic below for assistance. And if you work from home now, you can find our article here. Who to contact? If you are an individual, sole trader, small or medium business and you're having difficulty meeting your tax and super obligations because of COVID-19, speak with a trusted tax advisor like us, The Tax Accountant. We can work with you to support you to manage your tax affairs.
What financial support is available in response to the COVID-19 pandemic? The pandemic has incurred significant damage emotionally and financially on Australians. In circumstances such as this, it is essential to know where you can go for help.
The Government is providing financial assistance to Australians, including: JobKeeper Payment Early release of superannuation Payments to support households Reducing superannuation minimum drawdown rates
Do you need more time to lodge your return or pay the tax due to the coronavirus pandemic? Firstly, try not to overlook your tac commitments. Talk to us and clarify your circumstance. We might have the option to apply for an extension for your benefit with the ATO. And if you experience financial troubles from the coronavirus pandemic, you can request an extension to pay the tax debt you owe ATO.
Extensions and support for business Entrepreneurs influenced by the coronavirus pandemic might be qualified for various help measures and assessment expansions.
Options available to assist businesses impacted by COVID-19 include: · providing cash flow assistance for employers, · increasing the instant asset write-off, making more businesses eligible, · backing business investment by accelerating depreciation deductions, · extended deadlines on activity statements, · GST reporting flexibility to get quicker access to GST refunds, · allowing businesses to vary Pay As You Go (PAYG) instalment amounts as well as instalment refunds for particular periods, · remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities, · low-interest payment plans for existing and ongoing tax liabilities.
Additional support during COVID-19 Low-interest payment plans
If you or your business has been affected by COVID-19 and you need help to pay your existing and ongoing tax liabilities, contact us to discuss entering a low-interest payment plan.
Vary your PAYG instalments
If you prefer pay as you go (PAYG) instalments, you can vary your PAYG instalments on your activity statement. You may also be able to claim a refund for any instalments made during the 2019–20 financial year.
Change your GST reporting cycle It is worth considering if you should temporarily change your reporting cycle. If you report quarterly and you are due for a GST refund, moving to monthly reporting means you can get quicker access to GST refunds you are entitled to. Before you make the change, you should be aware that:
You can only change from the start of a quarter, so a change now will take the effect from 1 April 2020 Changing your GST reporting cycle doesn't mean you have to change your PAYG withholding reporting cycle – you can manage this by specifying the roles you are changing Once you choose to report and pay GST monthly, you must keep reporting monthly for 12 months before you can elect to revert to quarterly reporting If you're registered for fuel tax credits and change your GST reporting from quarterly to monthly, you will also need to claim your fuel tax credits monthly.
Defer GST payments for importers If you are a GST-registered importer you may apply to defer your payments of GST on all taxable importations into Australia. This means instead of paying GST on your taxable imports up front, you can defer payment until the first activity statement lodged after the goods are imported.
To access the deferral scheme, you need to change from lodging your activity statements quarterly to monthly temporarily. This will also give you quick access to GST refunds you are entitled to.
Disclaimer: This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice