The Australian Taxation Office (ATO) has reminded small businesses they have until 31 December 2023 to make use of the amnesty on late lodgment penalties for income tax returns, fringe benefits tax (FBT) returns and business activity statements (BAS) that were originally due between 1 December 2019 and 28 February 2022.
Thus far, more than 14,000 small businesses have taken advantage of the amnesty since it was first offered on 1 June 2023, with more than $48 million in failure to lodge (FTL) penalties remitted.
Directors who bring their company lodgments up to date can also have FTL penalties remitted if they rely on company lodgments to finalise their own tax affairs. This applies to eligible lodgments made between 1 June and 31 December 2023.
ATO Assistant Commissioner, Jillian Kitto stated that this amnesty is the perfect opportunity for small businesses to re-engage with their tax affairs and get back on track with their lodgment obligations without penalties.
“Having up-to-date lodgments 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,” Kitto said.
For small businesses that have ceased trading, they will need to advise their registered tax professional or contact the ATO directly to seek assistance with finalising their tax obligations, which may include lodging overdue returns, cancelling their ABN and paying any amounts overdue.
While penalties will be remitted under the amnesty, businesses with a tax debt after their overdue forms are lodged must pay in full to avoid further interest charges or check the ATO website to see if they are eligible for a payment plan.
