The ATO and Coronavirus

How the ATO is assisting business to deal with the impacts of Coronavirus.

We are in unprecedented times and it seems that we are hearing that particular word numerous times each day. As the impact of the virus changes each day, so do the policies being released by government and the ATO. We will attempt to keep our clients continually updated to ensure that we can assist you in accessing any and all concessions and grants that are available as quickly as possible.

We are expecting the Federal Government to release another stimulus package to add to the package announced earlier this week. Disappointingly, the Victorian State Government is yet to announce any type of stimulus for business in Victoria even though some other states have already announced measures. They seem to be waiting for the Federal Government to do all the heavy lifting.

The ATO has recently released their stance on how they will be assisting taxpayers to work through the impact that the Coronavirus is going to have on their business. We will provide an outline of the ATO assistance measures below. It is important to note that the ATO have advised that any concessions provided by them need to be applied for on an individual basis and will be considered on a case by case basis.

Deferral of Payments of Tax
A deferral of up to 4 months on the payments of any tax due including Business Activity Statements and Income Tax Assessments. The ATO have made it clear however that they expect all lodgements to continue to be made on time.

Changing from Quarterly to Monthly BAS Lodgments
For those businesses who expect to receive a refund on their Business Activity Statements, the option to change from lodging their BAS quarrterly to monthly so that they can access their refunds quickly.

Varying your PAYG Instalment
For companies and individuals who have PAYG Instalments on their Business Activity Statement, the option to vary your PAYG instalment to nil in the March quarter (regardless of your expected taxable income for the year). In addition, you will be able to claim a refund for any instalments paid in the previous 2 quarters. (September and December 2019)

Interest on ATO debts
The ATO will remit any interest and penalties incurred from 23 January 2020 including allowing business to enter low interest payment plans for existing and ongoing tax liabilities.

The ATO have made it clear that there are no concessions for superannuation payments and that they expect all superannuation guarantee (employee superannuation) to continue to be made on time. They have actually advised that superannuation payments should be prioritised in relation to all other ATO and BAS payments.

As mentioned earlier, it is important to remember that the above concessions will only be available when applied for on a case by case basis.

If you have any questions or would like us to assist with applying for any of the above concessions, please do not hesitate to contact our office.

Dendra Accounting Group – Melbourne Business Accountants
1-3 Ruby St, Burwood East VIC 3151
Ph: (03) 8877 2500