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Small businesses only have until the end of December to take advantage of the scheme, the Tax Office warns.
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ATO waives $48m under lodgement amnesty
07 December 2023
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More than $48 million in failure-to-lodge penalties have been waived by the ATO for 14,000 small businesses that have taken advantage of an amnesty that began in June but time is running out to take advantage of the scheme, the Tax Office warns.
It said small business owners had just 25 days left – until 31 December – to lodge overdue forms for income tax, FBT and BAS originally due between 1 December 2019 and 28 February 2022.
“Directors who bring their company lodgements up to date can also have failure-to-lodge penalties remitted if they rely on company lodgements to finalise their own tax affairs,” the ATO said.
“This applies to eligible lodgements made between 1 June and 31 December 2023.”
Small businesses that have taken advantage of the scheme dodged an average of more than $3,400 in penalties each. ATO Assistant Commissioner Jillian Kitto said the amnesty was the perfect opportunity for small businesses to get their tax affairs back on track for a more realistic assessment of their financial affairs.
“All you need to do to take advantage of this opportunity is lodge, and we will remit any failure-to-lodge penalty,” she said.
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“Having up-to-date lodgements is important as it will give you a better understanding of your true financial position and ensure you can make informed decisions about your priorities and future planning.”
The amnesty, announced in the March budget, applies to small businesses with less than $10 million in annual turnover at the time the lodgement was due. Privately owned groups and individuals controlling more than $5 million in net wealth are ineligible for the scheme.
Penalties for other than failure to lodge, along with general interest charges (GIC), are excluded.
“If you have an existing debt or accrue a new debt through your late lodgement, GIC continues to apply to those debts until they are paid in full,” the ATO said.
Where a small business has ceased trading the owner should get advice from their accountant or contact the ATO directly to finalise its tax obligations, which might include lodging overdue returns, cancelling an ABN and paying any amounts overdue.
“While penalties will be remitted under the amnesty, if a business finds themselves with a tax debt after their overdue forms are lodged, it’s important they pay in full to avoid further interest charges or check the ATO website to see if they are eligible for a payment plan,” the Tax Office said.
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