21 January 2011

Coalition plays catch-up on tax help for flood victims

The Gillard Government has provided significant tax relief for small businesses affected by the flood crisis and any attempt by the Opposition to suggest otherwise is mischievous and wrong, Assistant Treasurer Bill Shorten said today.

Flood victims can get their tax payments deferred and refunds fast-tracked after the Government announced a series of measures several weeks ago to make things a little easier for people dealing with the devastation of the worst floods in recent memory.

Businesses with addresses within one of the identified flood affected postcodes will automatically have their lodgement and payment dates deferred for December monthly activity statements from the original due date of 21 January 2011 to 21 February 2011.

"The Opposition's claim that only businesses with an annual turnover of more than $20 million are eligible for tax assistance is simply incorrect. The ATO will defer lodgement and payment dates for all affected businesses from 21 January 20100 to 21 February 2011. Those that require additional help can contact the ATO and they will deal with them on a case-by-case basis," the Assistant Treasurer said.

"It is unhelpful for the Opposition to be spreading misleading claims about the tax assistance being offered to businesses during this crisis, when all businesses are trying to do is get accurate information."

"As well as all the other support the Government is providing, the Australian Taxation Office has put in place a range of support strategies for those affected by floods," Mr Shorten said.

"Australians who have lost their homes, businesses and livelihoods have bigger concerns than worrying about letters from the tax office, or getting their activity statements in on time."

"Anyone affected by the floods can simply contact the ATO and they will work with you to sort out your tax affairs, or give you enough time to deal with the effects of the floods before you have to worry about tax issues."

The ATO can provide the following services:

  • Fast tracking refunds
  • Providing people and businesses extra time to pay debts – without interest charges
  • Giving extra time to meet activity statement, income tax and other lodgement obligations – without penalties
  • Helping to reconstruct tax records where documents have been destroyed, and make reasonable estimates where necessary
  • Assisting people if they are experiencing serious hardship.

"Businesses in particular are encouraged to take advantage of the offer of a free record reconstruction service, which can help put together replacement records for those lost in the floods," Mr Shorten said.

To request a free 'record reconstruction visit' register online at www.ato.gov.au/assistancevisit. Tick only the box for record reconstruction.

"The Gillard Government is determined to provide whatever assistance we can to people affected by the Queensland floods. This support by the ATO is one small but very real way we can make things just that little bit easier for people."

"The Government is continuing to work with the ATO and will consider proposals from the Opposition, businesses and taxpayers affected by the floods about ways to provide further tax assistance," he said.

The ATO has set up a dedicated emergency support info line – 1800 806 218 – or visit the website at www.ato.gov.au