Measures to help small businesses meet their tax obligations
On 1 June 2009 the Tax Office introduced new measures to help small businesses that are struggling to manage their tax payment obligations in the current economic climate.
You can read the Commissioner’s speech to the Council of Small Business of Australia on 10 June 2009, where he outlined these new measures.
Businesses with an annual turnover of less than $2 million and an activity statement debt can apply for a GIC-free payment arrangement from now until 30 June 2010.
GIC will be remitted for a maximum period of 12 months, provided the payment arrangement is maintained.
There is no limit on the amount of debt under arrangement.
Who is eligible?
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 and sustainable payment arrangement with the Tax Office that is entered into between 1 June 2009 and 30 June 2010.
How does it work?
The GIC-free period applies to activity statement debts (eg GST, PAYG).
Superannuation guarantee charge (SGC) debts are not included as the GIC forms part of the employees’ entitlements.
No GIC is payable for a maximum of 12 months from the day on which the arrangement is entered into.
The actual GIC-free period (maximum of 12 months):
starts on the day on which the agreement was made, and
finishes on the day the final instalment is due.
If the arrangement defaults, the GIC-free period ends on the date of default.
If a payment arrangement entered into prior to 1 June 2009 is renegotiated after 1 June 2009, the new arrangement will be treated as a GIC-free payment arrangement subject to the eligibility criteria being satisfied.
For businesses which belong to a group of entities, the circumstances across all members of the group may be considered when determining eligibility for these offers.
How do I apply?
Phone us on 13 11 42 from 8.00am – 6.00pm Monday to Friday.
If your debt is less than $25,000 you can use our automated self help service to apply for a payment arrangement by calling 13 72 26. Our self help service operates 24 hours a day, seven days a week.
You can use our online calculator to work out a payment arrangement that you can afford. Calculate different payment scenarios based on your circumstances and use these as a guide to propose a payment arrangement that enables you to address your tax obligations.
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