29 September 2021
In addition to the various support measures available to different States and Territories in Australia, the Australian Tax Office (ATO) also provides general relief for businesses struggling with the impacts of COVID-19.
If you are a sole trader or small or medium (SME) business that is struggling with cashflow as a result of COVID-19 lockdowns, you can consider:
- Lodging a Superannuation guarantee charge statement with the ATO within a month of the quarterly due date and setting up a payment plan to pay the superannuation guarantee charge.
- Setting up payment plans with the ATO to pay your existing and ongoing tax liabilities by instalment so that no interest is charged on the outstanding debt while you are affected by COVID-19.
- Asking the ATO to remit interest and penalties incurred after 23 January 2020.
- Varying your PAYG instalments to manage your repayments.
- If you’re in a GST refund position, changing your GST reporting cycle from quarterly to monthly to enable you to receive your refund sooner.
- Deferring GST payments on all taxable importations into Australia if you are an importer (i.e. defer payment of GST until the first activity statement is lodged after the goods are imported).
- Arranging a deferral of your obligation to lodge a GST return and pay GST and requesting a remission of any interest or penalties that may have been applied, if you supply low value goods or digital products to Australia as a limited registration entity (LRE).
- Applying for administrative relief from Division 7A minimum yearly repayments.
- Disregarding the days spent in Australia by New Zealand sportspersons and support staff that have been in Australia for extended periods as a result of COVID-19, and therefore not have to include income derived during this time in Australia in their tax return.