If your client cannot pay their tax debt on time, please phone us immediately on 13 72 86 Fast Key Code 1 2 2 to discuss their circumstances.
When you speak to us about payment of your client’s outstanding tax debt or remission of general interest charge (GIC), we are committed to:
understanding their situation and individual circumstances
being fair and equitable in the application of the law, processes and policy
considering their case on its merits and assisting them to move on, and
assisting them where possible if they are attempting to engage with the Tax Office and do the right thing.
In some circumstances, you may need to provide written details of your client’s financial position, including a statement of their assets and liabilities and details of their income and expenditure.
We also need to understand what steps your client has taken to obtain funds to pay their tax debt, as well as what they have done to make sure they meet future tax debts on time.
Your client may be given extra time to pay, depending on their individual circumstances.
If we give your client extra time to pay their debt, they are required by law to pay the GIC. The GIC is tax deductible in the income year in which it is incurred. The law provides the Commissioner with the opportunity to remit all or part of the GIC in certain circumstances. Further information about our remission policy is available at chapter 93 of the ATO Receivables Policy.
New measures to assist small business
The Tax Office has introduced new measures to help businesses with an annual turnover of less than $2 million that are struggling to manage their tax debts in the current economic climate.
These include:
12 month general interest charge (GIC) free payment arrangements to small business
deferral of the payment due date on activity statement liabilities for small business.
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