ATO and the Banks will give you a break!

The ATO and the banks will give you a break by agreeing to provide administrative, interest and payment relief for some obligations of people affected by the coronavirus outbreak, on a case-by-case basis.

Important

These relief options will not be automatically applied, so you need to contact the ATO to discuss the options. Businesses impacted by the coronavirus should contact us to approach them as your Tax Agent, or you can contact them direct to discuss their relief options.

Payment deferrals

If you or your business has been impacted by COVID-19, the ATO can work with you to defer for up to 4 months some payments and vary instalments you have due, such as income tax assessments, activity statement (including PAYG instalments), FBT and excise payments.

Varying PAYG Instalments

If you expect a poor profit figure for the period, or even a loss, you can vary your PAYG instalment amounts down (even to $0) for the March 2020 quarter.

If the poor performance will affect your whole of year profit/loss then businesses that vary their PAYG instalment down (even to $0) can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.

If you realise later that you’ve made a mistake working out your PAYG instalment, you can correct it by lodging a revised activity statement or varying a subsequent instalment.

Remitting Interest and Penalties

The ATO says that where your business has been affected COVID-19, we can discuss with them the remitting of any interest and penalties, incurred on or after 23 January 2020.

Low-Interest Payment Plans

The ATO is prepared to work with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low-interest payment plans. 

Monthly GST credits

Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to. This choice is not retrospective, so a change now will take effect from 1 April 2020.

Bank Relief

Given the current economic climate, there is also the potential that banks may offer relief on a case-by-case basis. Banks may be prepared to provide some relief for a 90-day period (whether that is a pause on payments or a movement from ‘Principle & Interest’ to ‘Interest Only’ payments). Detailed below is a list of contact numbers you can use to contact your Bank.

  • Bank of Melbourne: Customer assist – 1300 630 266
  • Westpac: Customer Assist – 1800 067 497
  • NAB: NAB Assist – 1300 135 323
  • CBA: Financial Assist Team – 1300 720 814
  • Bankwest: Customer assist – 1300 787 144 
  • Macquarie Bank: Home loans – 1300 363 330, Credit Cards – 1800 674 922, Leasing – 1300 368 908, Business Banking – Please contact your Relationship Manager or 1800 620 673
  • ANZ: Customer Assist – 1800 252 845

Advice
If you need advice on the tax changes, contact Noel May or Amanda Klye on
(03) 9585 7555 orenquiries@mktax.com.au

Previous post:

Next post: