The Australian Taxation Office (ATO) will provide temporary relief to small businesses struggling with high fuel costs. The measures are designed to give Aussies “more flexibility” as the spike in costs hits small business cashflow.
The new measures will be available to eligible businesses that are unable to meet their payment obligations for three months, until June 30. The ATO relief will include access to more flexible payment plan arrangements, including longer terms and no upfront payments.
Businesses can also request a remission of the general interest charge and other penalties, along with variations to pay as you go installments where their taxable income has been reduced.
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ATO Commissioner of Taxation Rob Heferen urged businesses impacted by high fuel costs to get in touch with the tax office and seek support.
“We recognise the fuel situation may severely affect some businesses, disrupting business supplies and day-to-day operations and creating uncertainty and financial pressures. This is why we’re supporting affected businesses in these challenging times,” he said.
Treasurer Jim Chalmers said the economic fallout from the war in the Middle East was affecting everyone, and the new tax measures were designed to give people “more flexibility”.
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“They’ll also limit compliance actions across the worst-affected industries, and some debt collection actions may be paused where that’s appropriate,” he said.
The government will also extend the Small Business Responsible Lending Obligation exemption for a further 10 years, which it said would ensure small businesses aren’t hit with extra regulatory burdens and delays when accessing loans.
The Australian Banking Association (ABA) has flagged temporary assistance for customers and businesses, including temporary payment deferrals, loan restructuring and emergency credit limit increases.
“If you’ve been impacted, get in touch with your bank as early as you can. The sooner you reach out, the easier it is for banks to help,” ABA CEO Simon Birmingham said.
The Council of Small Business Organisations Australia (COSBOA) has welcomed the relief measures.
“These are sensible, practical measures that go directly to the issue of cashflow and recognise the conditions small businesses are operating in, and the importance of keeping them moving,” COSBOA CEO Skye Cappuccio said.