iscover Treasurer announces temporary relief for businesses impacted by fuel crisis
BusinessThe Tax Office has agreed to provide temporary relief for businesses unable to meet their tax obligations due to fuel supply issues and limit compliance action across the worst-affected industries.
Treasurer Jim Chalmers has announced a suite of relief measures for small businesses impacted by rising fuel costs, including tax relief and improved access to finance.
Chalmers said the ATO has agreed to provide temporary relief for businesses unable to meet their tax obligations due to fuel supply issues, including more generous payment plans, remission of interest and penalties and support with various PAYG instalments where there's been a downturn in taxable income.
"They'll also limit compliance actions across the worst affected industries, and some debt collection actions may be paused where that's appropriate," said Chalmers.
"Obviously we still want people to lodge and there is a threshold for where this kind of concessional treatment will be provided but the ATO is prepared to provide that kind of support in circumstances [which have been driven] by what we're seeing in the Middle East."
The ATO will also establish a dedicated channel for businesses to access these relief provisions.
"The ATO will continue to provide support for people experiencing serious financial hardship, and they'll also monitor conditions in the lead up to tax time," Chalmers added.
The government has also announced that it would help small businesses access credit more easily and quickly by extending the Small Business Responsible Lending obligation exemption for a further 10 years.
"This will help ensure small businesses aren't slugged with additional regulatory burden and delays when they're accessing loans," Chalmers said.
The finance sector has also made commitments to proactively work with customers, suppliers and employees to respond to economic pressures.
"I know that the banks and the non bank lenders have put in place specialist teams to support small businesses and farmers and communities struggling with cost pressures and supply chain disruptions as a result of the war in the Middle East," Chalmers said.
"A number of options are available to customers doing it tough, whether it be temporary, payment deferrals, loan restructuring, emergency credit limit increases, all of that, obviously, depending on individual circumstances, but some support being made available there."
Chalmers said the announced measures from the government would make Australia's systems more flexible, its supply chain more responsive, and provide more support for businesses.
"Our here is to provide support and to provide flexibility - the two most important things that we can help with at a really difficult time."
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Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
