ATO bushfire relief will help over 3.5 million Australians. See what you’re eligible for.

The 2019/2020 bushfires have had a profound effect on Australians. As of 14 January 2020, 18.6 million hectares of land has burned, 30 people and 1 billion animals have been killed and 5,900 buildings have been lost. For those directly affected, it is a tragedy beyond comprehension. The last thing those families and businesses want to be doing is worrying about their tax requirements.

The Australian Taxation Office (ATO) understands this and is offering tax relief and assistance to over three and a half million bushfire victims. This relief ranges from deferments on filing requirements to bespoke solutions and in most cases will apply automatically to those individuals, businesses and self-managed superannuation funds (SMSFs) located within fire affected postcodes.

If you are located in one of the indicated postcodes, or even if you’re not, here are the ATO bushfire relief measures on offer.

Automatic Deferments

The ATO is extending an automatic deferment to bushfire victims for any lodgements or payments due. Due dates are now pushed back until at least 28 May 2020 to lodge and pay business activity statements and income tax returns. This applies whether you manage your taxes yourself or have an agent do it.

You don’t have to do anything to get this deferment. If you’re in one of the indicated postcodes, it’s been extended automatically.

Fast Tracking Refunds

The ATO is also fast tracking refunds to those entities and individuals in the identified postcodes. If you’ve already lodged your return, your fast-tracked refund will happen automatically.

If you haven’t lodged your return yet, it might be worth trying to do it as soon as you can. Even though you don’t have to file, due to the automatic extension, new refunds will be fast tracked as well. And additional cash flow could be very helpful in dealing with your bush fire recovery.

Remittance of Interest and Penalties

If you’ve accrued any interest or penalties during the bush fires, the ATO is [forgiving] those charges. Again, this will happen automatically if you are in an impacted postcode. You don’t need to apply for this, even if you are tax agent.

Reissuance of Tax Documents

For those that have lost homes or places of business, it is likely that you’ve lost your tax documents as well. The ATO will reissue any tax documents that they have on hand.

Tax Debt or Outstanding Obligations

The ATO is putting a halt on commencing new debt recovery actions until 28 May 2020 (at least) for those in affected areas. You can also request a payment arrangement for outstanding debts if you aren’t automatically granted one.

The ATO is taking this a step further, as well, and will consider releasing bushfire victims from income tax and fringe benefits tax debts if they are ‘experiencing serious hardship’.

Tailored Help

The government knows that many who have been affected by the bushfire disaster aren’t necessarily located in one of the identified postcodes. If this is you, don’t let that stop you from seeking help. Ring the ATO’s Emergency Support Infoline on 1800 806 218 and speak to an ATO agent about your specific needs.

The ATO recognises that everyone’s situation is different and knows that there could be situations that warrant additional support or extensions beyond what they have currently offered. For example, there are many businesses whose trade has been significantly impacted by the bushfires, even though they may not have been directly impacted otherwise.

So, even if you don’t fall into one of the above categories, give the ATO a call. They’re standing by to work with you on a case-by-case basis. They’ve made it clear that they will be ‘flexible, reasonable and pragmatic when considering each request on its merits’.

Takeaway

At the end of the day, no one wants to run afoul of their tax and reporting obligations. Now is the time to be focusing on family and community, and the ATO knows that. The tax relief options are designed to help you do just that.

If you’d like more information about ATO bushfire relief, reach out. Our specialists are here to help.