Businesses Get a 12-month Tax Break

Setting up a business? ==> Business Structure. Which one or me?

On Wednesday, the Commissioner in an address to the Council of Small Business of Australia, announced new measures to support small businesses owing tax.

"These are:

  • 12-month interest free payment arrangements
    We are providing a 12-month general interest charge (GIC) free payment arrangement for businesses with turnovers of up to $2 million who are struggling to meet their obligations.
  • Interest-free deferral of the payment due date on activity statement liabilities
    We are also providing a deferral of the payment due date on activity statement liabilities to help small businesses manage short-term cash flow problems.
  • Cash flow relief for business: Pay As You Go (PAYG) Instalments
    The Government announced in the Budget that it will provide cash flow relief for small business by reducing PAYG instalments for the 2009-10 income year. It will apply to all taxpayers who pay quarterly PAYG instalments based on their previous year's tax adjusted by GDP growth (that is clients who have chosen the amount option).
  • Cash flow relief for business: GST Quarterly Instalments
    Consistent with the reduced uplift factor for PAYG instalments, and having regard to economic forecasts, and the difficulties being experienced by many businesses, the Commissioner is reducing the GDP uplift factor used to calculate GST quarterly instalments for the 2009-10 income year to 2%."
The anouncement also encouraged small businesses to approach the Tax Office early if cash flow problems arise and said " Don't wait until the problem is too big and it's too late."

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