With the coronavirus pandemic starting to affect businesses in various ways and with an unprecedented demand for urgent tax relief measures across different sectors, there’s never been more of a time to need professional tax advice.
With government implementing programs like the Job Keeper Payment Plan, and many people working remotely from home, now more than ever, it’s essential to have a qualified accountant for all the new changes on tax.
Here’s a list of some new regulations which could be impacting your business.
1. Deferral of tax
Due to unforeseen circumstances relating to COVID-19, businesses can apply for a payment-only deferral to provide financial relief. This will be done with amounts through the business activity statements, income tax, fringe benefits tax, and other duties.
2. GST reporting from Quarterly to Monthly
Any small business, which is a business with an annual turnover of less than $20 million, and operating on a quarterly reporting cycle, can elect for a monthly reporting cycle for GST. This will allow businesses to access GST more efficiently, which will allow better cash flow.
3. PAYG adjustments
Pay as You Go (PAYG) instalments will now be allowed to be varied.
Refunds will also be available in respect of any instalment payments made for the September 2019 and December 2019 quarters.
4. Remission of interest and penalties
Penalties or interest that have been incurred in respect of tax liabilities from 23 January 2020 onwards may be remitted.
5. Payment plans
The Australian Tax Office is helping businesses with comprehensive solutions about how to make payment plans. Your tax advisor can work with your company to access low-interest payment plans to help reduce the financial burden.
6. Payroll tax
There are different rules and regulations in various states of Australia, so it’s good to check with your tax advisor on what works for your business jurisdiction. New South Wales, Queensland, Tasmania, and Western Australia have all introduced differing measures to defer, waive, or reduce the liability of businesses to payroll tax.
While this pandemic will likely have lasting changes in the world, it will be an opportunity for your business. For the best advice, contact our team on the Sunshine Coast or in Redcliffe today and book a consultation to help your company become stronger and more focused.
Jason is the director at Total Accounting Partners on the Sunshine Coast and in Redcliffe. He has been working as an accountant for over 16 years. He has experience in Public, Corporate, Management and Government accounting services and all aspects of accounting including Tax Planning, Superannuation, Structuring and Acquisitions. Jason is Xero certified and lead the team to Gold Partners with Xero.