The ATO is providing administrative support to tax professionals and their clients in Queensland and NSW affected by floods.
As businesses struggle to cope with the disaster, many are turning to their accountants to help them access government support and make insurance claims, and the ATO has moved back lodgment deadlines to help the recovery effort.
The relief applies to small businesses and individual taxpayers in affected local government areas in Queensland and NSW that need to lodge business activity statements and instalment notices with an original due date of 28 February 2022 or 21 March 2022.
“These taxpayers can lodge relevant returns up until 28 March 2022 and do not need to request a lodgment deferral if they are able to lodge by that date,” the ATO said.
“We understand that tax is not your number one priority at this time, however we encourage you to lodge when you can.
“This does not apply to significant global entities or large businesses, who will need to contact us to work through any lodgment concerns.”
The ATO said there was no need to request a lodgment deferral for those who lodge by 28 March.
“Our systems will still reflect the original lodgment due date of these documents until they are lodged. The due date will only update after the lodgment has been received,” the ATO said.
The ATO said businesses may see a penalty on their account until the office is able to complete the process of remitting associated penalties.
Meanwhile, the payment due date for these lodgments will not change.
“General interest charge (GIC) will still apply if payment is not made by the original payment due date,” the ATO said.
“If you are not able to pay by the due date, you should contact us to discuss payment options and request a remission of GIC. We will take an empathetic approach to your situation.”
For those who will not be able to lodge by 28 March 2022, tax agents can apply for a deferral that will be assessed on a case-by-case basis.
“If your practice has been affected by the floods and you need practice-wide support, contact us when you are ready for us to provide tailored support through our supported lodgment program,” the ATO said.
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.