Small businesses and not-for-profit organisations affected by the floods in parts of Queensland and NSW will have more time to lodge their business activity statements and instalment notices with an original due date of 28 February 2022 or 21 March 2022. Those taxpayers can lodge relevant returns up until 28 March 2022 without the need for a lodgment deferral. However, taxpayers need to be aware that the payment due date for these lodgments will not change, so general interest charges (GIC) may apply to any payments not made by the original payment date.
To further help flood-impacted small businesses + non for profits with cash flow, a refund of previously paid PAYG instalments can be claimed, and any GST refunds “fast-tracked”. Small businesses will also change their GST reporting cycle and vary their PAYG instalments without penalty, provided reasonable care is taken. Any flood-affected businesses that cannot meet their lodgment and payment obligations are encouraged to contact the ATO directly for tailored support. Below is a summary of financial support available with links to services.
Summary of Financial Support
Disaster recovery grant – up to $50,000 to help pay for the cost of clean-up and resuming operations.
Disaster recovery allowance – a short-term income support payment to assist if you’ve lost income as a direct result of the floods, provided by the Australian Government.
Stamp duty relief – for replacing insured commercial motor vehicles written off due to floods and storms.
Disaster relief loans – concessional interest rate loans up to $130,000 for small businesses and up to $25,000 for not-for-profit organisations.
If your small business needs help in deferring your tax obligations due to the floods, we can help liaise with the ATO on your behalf and work out the best plan for your situation. We can also help guide you through these and many other support payments as well as the tax consequences of each.
**The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.