30 June 2004

Fairer Treatment for Small Business Tax Debts

The Australian Taxation Office will implement a Small Business Debt Assistance initiative to help small business and individual taxpayers repay their current outstanding tax debts, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, said today.

“I welcome this initiative which will assist up to 500,000 small businesses and individuals,” Senator Coonan said.

“By agreeing to pay outstanding tax debts by direct debit from their bank, eligible small businesses and individuals will be offered reduced interest rates and flexible payment options.

“This is about balancing the need to protect revenue while being responsive to genuine problems faced by small business taxpayers in finalising their outstanding debts.

“Eligible small businesses and individual taxpayers will be offered a choice of extended repayment periods which will better match their cash flow and special treatment around the general interest charge will be provided for payment arrangements between six and 18 months.

“The ATO will be contacting businesses and individuals in the coming weeks to elaborate on the details of the offer.

“I am pleased that the ATO is responsive to the particular needs of small businesses and individual taxpayers that are endeavouring to meet their obligations.”

Further information will be available from the ATO website www.ato.gov.au or by calling the ATO on 13 28 66.