Assistance for Flood-Affected Taxpayers
From our February 2011 issue
The government and the ATO have implemented measures to help taxpayers in flood-affected areas to get back on their feet.
How might you be affected?
The ATO is able to assist such taxpayers in a number of ways, including by:
1. fast-tracking refunds;
2. giving people extra time to pay debts – without interest charges;
3. giving more time to meet BAS and other lodgment obligations – without penalties;
4. helping to reconstruct tax records where documents have been destroyed, and make reasonable estimates where necessary;
5. offering visits from field officers to help reconcile lost records;
6. helping people to claim tax hardship concessions; and
7. the ATO has also granted an automatic one-month extension for the lodgment of monthly activity statements and related payments (from the original due date of 21 January 2011 to 21 February 2011) for businesses with addresses within one of the identified flood affected postcodes.
What should you consider?
The ATO is encouraging businesses with superannuation guarantee obligations which are not able to make their contributions for the quarter to lodge a “Superannuation Guarantee Charge Statement – Quarterly (NAT 9599)” form as soon as possible because, until this statement is lodged, nominal interest (currently at the rate of 10%) will accrue on shortfall contributions.
As this interest is paid to the employee (to compensate for lost earnings), the ATO has no discretion to waive it. Affected people can contact the ATO directly on 1800 806 218.
The government has also announced that all “bucket” donations of $10 or less may be deducted by the donor without substantiation.
Affected taxpayers should also explore the many forms of government assistance that may be available at www.disasterassist.gov.au.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.