COVID -19 ATO SUPPORT MEASURES
for those who lodge their activity statements through my tax agent portal;
BAS Jan Mar 2020 due date is 26th May 2020, using tax agent services; require to lodge as per Tax Agent Lodgement Program, you should receive up 100% of PAYG Withheld Wages for the Quarter as an offset
Options available to assist businesses impacted by COVID-19 include: (see attached)
Deferral of payments
ATO has announced that taxpayers can defer by up to six months the payment date of amounts due through the BAS (including PAYG instalments), income tax assessments, Fringe Benefits Tax (FBT) assessments etc, up to Sep 12 2020
Lodgements are still required to be made on time, and the usual process for applying for lodgement deferrals continue to apply.
Employers will still need to meet their ongoing super guarantee obligations for their employees.
Vary your PAYG instalments
If you are a pay as you go (PAYG) instalments payer, you can vary your PAYG instalments on your activity statement. You may also be able to claim a refund for any instalments made during the 2019–20 financial year.
You can do so through their activity statements and should use ‘Code 23 – significant change in trading conditions’ or ‘Code 26 – financial market changes’ as the reasons for the variation.
Where you choose to vary your PAYG instalments we won’t apply penalties or charge interest to varied instalments for the 2019–20 financial year.
If you realise 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.
Businesses that vary their PAYG instalment to nil can also claim a refund for any instalments made for the September 2019 and December 2019 quarters, at item 5B of the March 2020 activity statements.
Taxpayers can also consider discussions with the ATO regarding any issues in meeting other tax payment dates, including PAYG liability in respect of salaries.
Cash flow assistance by converting to monthly GST reporting
If you report quarterly and you are due for a GST refund, moving to monthly reporting means you can get quicker access to GST refunds you are entitled to. Before you make the change, you should be aware that:
you can only change from the start of a quarter, so a change now will take effect from 1 April 2020
changing your GST reporting cycle doesn’t mean you have to change your PAYG withholding reporting cycle – you can manage this by specifying the roles you are changin
once you choose to report and pay GST monthly, you must keep reporting monthly for 12 months before you can elect to revert to quarterly reporting
if you’re registered for fuel tax credits, and change your GST reporting from quarterly to monthly, you will also need to claim your fuel tax credits monthly.
Other measures Remitting interest and penalties, incurred after 23 January 2020, that have been applied to tax liabilities.
Affected businesses can enter into low interest payment plans to settle their ongoing and existing tax liabilities.Therefore – Any payments for BAS Jan Mar 2020 can be deferred but needs to be requested in writing and PAYG Instalment (Business and Individuals) can be varied as well as any instalments made during the 2019–20 financial year, I can do that if you want me to