Help for small businesses experiencing short-term financial difficulties

We understand that small businesses can experience short-term financial difficulties due to challenging business conditions or unexpected events such as natural disasters. We offer help to viable businesses having trouble meeting their tax payment obligations due to such short-term difficulties.

This help includes:

• flexible payment arrangements that align with cash flow
• remission of general interest charge (GIC) where appropriate.

For more information on payment arrangements, watch the 'Stay in control of your business' video on our YouTube channel at www.youtube.com/AusTaxOffice

GIC-free payment arrangements for activity statement debts

In some cases we offer payment arrangements for activity statement debts free of GIC for up to 12 months. These arrangements are aimed at helping small businesses that have a good history of meeting their tax lodgment and payment obligations but are experiencing short-term financial difficulties.

Who is eligible?

You may be eligible for a GIC-free payment arrangement if your business:

• has an annual turnover of less than $2 million
• has a recent activity statement debt of $50,000 or less, which has been outstanding for no longer than 12 months
• has a good payment and lodgment compliance history, including
• no more than one payment arrangement default within the last 12 months
• no outstanding activity statement lodgments
• is unable to obtain short-term finance through normal business channels
• is able to demonstrate ongoing viability, and
• agrees to a sustainable direct debit payment arrangement that will allow the debt to be paid within 12 months.

How does it work?

• You will not have to pay GIC on your activity statement debt for a maximum of 12 months from the day on which you enter into the arrangement with us.
• The actual GIC-free period
• starts on the day you make the agreement with us
• finishes on the day your final instalment is due.
• If you default on the arrangement the GIC-free period will end on the date of default.
• You must meet all of your ongoing tax payment and lodgment obligations.

How do you apply?

To apply, phone us on 13 11 42 between 8.00am and 6.00pm, Monday to Friday.

If you are a registered user, you can contact us via the Business Portal.

Tax agents can contact us using the Tax Agent Portal.

BAS agents can contact us using the BAS Agent Portal.

Use our online calculator to calculate different payment scenarios based on your circumstances. You can then use these as a guide to propose a payment arrangement that enables you to meet your tax obligations.