The Australian Tax Office (ATO) has recognised that a number of large businesses will be impacted by COVID-19, which may result in disruption to their tax obligations.
The ATO has advised that:
- Tailored support available – the Commissioner has advised that administrative measures have been implemented to assist Australians experiencing financial difficulties as a result of COVID-19. It is important to note that these measures are not automatically implemented and to receive support the Large Services Team of the ATO must be contacted. From there, the ATO will assist with tailored arrangements that allow the large business to continue to manage and meet tax obligations. The Commissioner has announced that the tailored support arrangements may include:
- Payment deferral;
- Adjustments to the GST reporting cycle;
- PAYG variation; and
- Interest and penalty remission.
- Government stimulus – late last week the Australian Federal Government announced an extensive package of economic support measures. This includes measures available for eligible businesses with a turnover of less than $500 million, including:
- Instant asset write-off threshold of up to $150,000 for assets acquired by 30 June 2020; and
- Accelerated depreciation of 50% in the first year on new Division 40 assets (that is, effectively ‘plant and equipment’) acquired and installed ready for use by 30 June 2021.
The legislation implementing these measures is yet to be introduced to parliament and is anticipated to occur in coming weeks.
Further advice regarding the ATO’s announcement and the impact for your business, please contact Corporate Partner, Michael Hansel or Taxation Partner, Michael Patane.