Heads up, the clock is ticking for small businesses with overdue lodgments! The Australian Tax Office (ATO) has extended an olive branch in the form of the Small Business – Lodgment Penalty Amnesty Program. But this opportunity won’t last forever, so here’s everything you need to know.
What is the Small Business – Lodgment Penalty Amnesty Program?
Announced as part of the 2023-24 Budget, this program offers a unique chance for small businesses to catch up on overdue income tax returns, business activity statements (BAS), and fringe benefits tax returns. If you lodge your overdue forms between 1 June 2023 and 31 December 2023, the ATO will automatically remit any failure to lodge penalties.
Who is Eligible?
To qualify for this amnesty, your small business must have had an annual turnover of less than $10 million at the time the original lodgment was due. However, the program does not apply to privately owned groups or individuals controlling over $5 million of net wealth.
What Forms Are Covered?
The amnesty applies to overdue forms that were due between 1 December 2019 and 28 February 2022. This includes income tax returns, BAS, and fringe benefits tax returns.
What About Interest Charges?
While the failure to lodge a penalty will be automatically remitted, general interest charges will still apply. So, the sooner you act, the less you’ll owe.
How to Take Advantage of the Amnesty
- Check Your Eligibility: Make sure your business meets the criteria, including the annual turnover limit.
- Identify Overdue Forms: List all the overdue forms that fall within the specified date range.
- Lodge Them: Submit these forms between 1 June 2023 and 31 December 2023.
- Settle Any Outstanding Debts: While penalties will be remitted, interest charges will still apply. Consider a self-serve payment plan for debts up to $100,000.
Don’t Miss Out
The amnesty program is a golden opportunity to get your business back on track without the burden of penalties. But remember, this program ends on 31 December 2023. So, act now to make the most of it!
Ready to sort out your taxes without the headache? At Accounts All Sorted, we’re here to guide you every step of the way. Contact us today to ensure you don’t miss out on this limited-time amnesty opportunity.Talk To Us Today