The ATO (Australian Taxation Office) is encouraging small businesses to take advantage of a new opportunity to catch up on their overdue tax returns and activity statements. This opportunity is called an amnesty, which means that eligible businesses can lodge their overdue forms without facing penalties for late submission.
The amnesty was announced in the 2023–24 Budget and is applicable to tax obligations that were originally due between December 1, 2019, and February 28, 2022. It started on June 1, 2023, and will continue until December 31, 2023.
To qualify for the amnesty, a small business must have a total income of less than $10 million at the time the original lodgement was due.
Emma Tobias, an Assistant Commissioner at the ATO, is urging small businesses to make use of this opportunity if they have fallen behind on their tax obligations. She acknowledges that recent years have been difficult due to the pandemic and natural disasters, which may have caused businesses to prioritize other things over lodging tax forms.
However, it’s important to get back on track with tax obligations because filing these forms is not optional. The amnesty is designed to make it easier for affected small businesses to catch up.
When businesses or their tax professionals submit their overdue forms under the amnesty, they don’t need to separately request a waiver of penalties for late submission. The ATO will take care of remitting these penalties automatically. There may be a temporary penalty on their account, but it will be remitted by the ATO.
Ms. Tobias also mentioned that if a business has stopped operating, they need to inform their registered tax professional or contact the ATO directly.
It’s important to note that the amnesty only applies to income tax returns, activity statements, and fringe benefits tax returns. It doesn’t cover superannuation obligations or other administrative penalties associated with the Taxable Payments Reporting System.
So, if you are behind in your tax obligations, reach out to our experienced Team on 55612643 and we will soon get you back on the right track with the ATO.
Have a great day!
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