ATO Helps Small Buiness Manage Tax Debts

The Australian Tax Office (ATO) has recently announced an important initiative to help businesses with an annual turnover of less than $2 million that are under pressure to meet their tax debts in the current economic climate.

On the 10th of June, the Commissioner for Taxation Michael D’Ascenzo confirmed his commitment to help struggling small businesses by offering twelve month general interest charge (GIC) free payment arrangements and also deferring the payment date for activity statements.

The ATO have recommended that businesses in need should contact them as early as possible to discuss their circumstances so we can negotiate a sustainable interest free payment arrangement.

The ATO is offering small businesses with temporary cash flow problems the following:

Twelve month GIC free payment arrangements

Small businesses, with an annual turnover of less than $2 million, with an activity statement debt can apply for a GIC free payment arrangement from now until 30 June 2010.

If the ATO agrees to terms, any GIC will be remitted for a maximum period of 12 months, provided the payment arrangement is maintained.

Deferred activity statement payment due dates

Small businesses can also request a deferral of payment on their next activity statement.  Businesses with short term cash flow problems that pay quarterly and annually may be granted a deferral of up to two months, with those that pay monthly eligible for up to one month.

It is important to note that activity statements still have to be lodged on time.  However, if it is agreed with the ATO, no interest applies for the period of the deferral.

If your small business is currently experiencing financial hardships and may struggle to meet your tax debts, please contact your knp representative to let us help you try and negotiate a sustainable interest free payment arrangement.

Email your knp representative, knp@knp.com.au or call to make an appointment on +61 3 9824 8111.




knp News
knp Taxation & Financial News

Federal Budget - Personal Taxation

Highlights:

Foreign Employment Income
Under the proposed measures, foreign employment income will generally be taxable, but taxpayers will be entitled to a tax offset for foreign tax paid on the foreign employment income.

Employee share schemes
The Government has announced that all discounts on shares and options provided under an employee share scheme, whether qualifying or non-qualifying, will be assessed in the income year in which they are acquired.

Private health insurance rebate
The Government announced that high income earners will receive a reduction in their private health insurance rebate and face an increase in Medicare levy surcharge should they opt out of their health cover.

Seniors Health Card
The Government said that it will not include gross income from superannuation income streams from a taxed source when determining an individual’s eligibility for the Commonwealth Seniors Health Card, a measure which was due to come into effect on 1 July 2009.
However, the Government will proceed to include income that is salary sacrificed to superannuation in the income assessment, which will take effect from 1 July 2009.

Federal Budget - Business Taxation

Highlights...

Repeal of unlimited amendment periods
The Government announced that it will repeal certain provisions in the income tax laws that currently provide the Commissioner with an unlimited period in which to amend an item in a taxpayer’s income tax return.

Assets and deemed dividend rules
The Government will extend the deemed dividend rules to payments by way of a licence or right to use real property and chattels, such as cars, boats and real estate.

Use of non-commercial losses restricted
From 1 July 2009, taxpayers with an adjusted taxable income of over $250,000 will only be able to deduct expenses from non-commercial business activities against the income from those activities. Any excess deductions will be quarantined to the business activity.

Federal Budget - Superannuation Measures

The Federal Budget announced changes to superannuation in the following areas:
Changes to concessional contributions cap
Superannuation co-contribution
Reduction in pension drawdown

ASIC Fees

Increase in ASIC fees
In the 2009/10 Federal Budget, the Government stated that it will index fees and charges collected by the Australian Securities and Investments Commission (ASIC) to the Consumer Price Index from the 2010/11 income year

The Question to Fix or Not to Fix

The RBA has reduced interest rates sharply over the last 6 months, to a 49 year low of 3 per cent.
To read more on this from our financing specialist - Required Finance

LINKS

:: knp Solutions
:: ASX
:: All Ordinaries
:: Dow Jones
:: The Australian
:: The NY Times
:: London Times
:: Financial Review
:: The Age
:: BRW
:: ATO
:: ASIC
:: CNN
:: ABC


sapmle image one

knp Classifieds

knp Solutions believes in investing its clients' financial future, that is why we have our classifieds page.

If you are selling or buying, offering deal for fellow knp clients or simply in in need of some promoting, we are happy to place your business advertisement on our Classifieds page.

If you are interested in participating in our classifieds section than please contact our knp representative on +61 3 9824 8111 or sdunn@knp.com.au