Small businesses given unique opportunity to get back on track with tax

The ATO is encouraging small businesses with overdue income tax returns, fringe benefits tax returns or business activity statements to rectify this promptly. To get their lodgements on track, they ought to use the opportunity of a new amnesty.

Amnesty was declared during the 2023-24 Budget. This applies to tax obligations that were due during the period ranging from December first, two thousand nineteen through February twentyeighth, two thousand and twenty-two. June through December of the year twenty-three is when this event occurs.

A small business can benefit from amnesty only if its aggregated turnover did not reach or surpass $10 million by the time when the original lodgement should have been submitted. The ATO has launched an initiative aimed at encouraging small businesses to come forward about any unpaid or overdue tax liabilities, with no penalties incurred.

Small businesses that qualify can submit their overdue forms during this period. The ATO will automatically remit any FTL penalties that may arise.

The amnesty is an opportunity for small businesses of fulfilling their tax obligations and return to compliance as urged by ATO Assistant Commissioner Emma Tobias. They must do so if they have fallen behind.

The pandemic and natural disasters have made things difficult for numerous small businesses over the past few years. We recognize that certain responsibilities, including filing ATO forms and securing lodging, might not have received sufficient attention. Still, it is significant to return to meeting tax obligations. These forms must be lodged without exception; hence our amnesty plan strives to facilitate the procedure for affected small enterprises and aid them in their recovery.

The submission of forms under the amnesty means that businesses or their tax professionals will not have to separately request a remission of FTL penalties.

Lodge your outstanding tax returns or activity statements and let us take care of the FTL penalty remission on our end. Your account may incur a brief FTL penalty, but rest assured that we will waive it.

In addition, Ms. Tobias highlights that outstanding lodgements may demonstrate a low level of interaction between small businesses and the tax system.

This might indicate a problem.

Businesses should lodge any overdue forms, irrespective of whether they are eligible or not. In cases where forms fall outside of amnesty eligibility criteria and attract FTL penalties, the ATO considers each person’s unique situation. It’s possible to waive these fines individually.

We comprehend that a few small businesses might feel anxious about paying off an overdue lodgement. If you cannot pay your debt in full, we can collaborate with you or your authorized tax/BAS agent. We can discover a suitable remedy for you.

The objective is to streamline the process and prompt small businesses towards ethical behaviour. We recommend that you contact your registered tax or BAS agent now. Ensure that your tax affairs are current.

Ms Tobias mentioned that taxpayers must fulfil their obligation of submitting overdue forms during the amnesty period and they will receive support from us to ensure compliance.

The ATO provides various support options, such as payment plans. Small businesses too have the ability to create their personalized online payment plans.

In case a business stops trading, it is necessary to inform either the registered tax professional or the ATO directly, as Ms Tobias clarified.

The amnesty is applicable to business activity statements, fringe benefits tax returns, and income tax returns. The exclusions include superannuation obligations and other administrative penalties like those under the Taxable Payments Reporting System.

More information is available on:

• Small Business Lodgement Penalty Amnesty Scheme

• Help with paying

• Modifying, halting, terminating, or marketing your enterprise.