ATO implements lodgement, payment deferrals

Following pressure from the accounting bodies, the ATO has said it is automatically applying lodgement and payment deferrals on company 2018-19 income tax returns to a new due date of 5 June 2020.

SMSF 2018-19 annual returns are now due by 30 June 2020.

The ATO explained that 2018-19 income tax returns for individuals, partnerships and trusts can be lodged by the 5 June concessional due date, provided any liabilities are settled by this date.

The lodgement and payment due date for 2019-20 fringe benefits tax (FBT) annual returns has also been automatically deferred to 25 June 2020.

The ATO’s latest announcement comes after it was urged by the Institute of Public Accountants and its peers to provide deferrals and penalty waivers in light of the evolving COVID-19 situation.

“[The joint bodies] noted that the situation was evolving rapidly and that blanket deferrals, or some form of concession, would enable tax agents to be in control of their work program and allow them to service distressed clients, provide advice on access to the stimulus measures and prioritise activity statement lodgements for cash flow boost recipients,” Chartered Accountants Australia and New Zealand, CPA Australia, the Institute of Public Accountants and the Tax Institute said in a joint statement earlier this month.

“We consider these deferrals, penalty waivers and assurance are necessary to support tax agents facing the impacts of the COVID-19 crisis at this critical time.”

The Tax Office has also heeded the calls to provide assurance to the tax profession on the 85 per cent lodgement benchmark.

“You will not be adversely affected if you do not meet the 85 per cent lodgement program performance benchmark and we will be working pragmatically and flexibly to ensure that we provide the right support for impacted tax professionals,” said the ATO.

“If you or your clients feel overwhelmed or are behind with your lodgement program, we can help. Contact us as early as possible, so we can work with you to find a solution,” the Tax Office concluded.