If you have had difficulties paying your tax on time or are currently in a financial situation in which paying your tax has become a burden that you are unsure how to manage, it’s important to know that you have options available to you. Though it may be a stressful time for you, the last thing you should do is delay your payments. The Australian Taxation Office (ATO) has set out payment plans in which individuals and businesses can pay their tax.
This is how you can get the help you need to pay the tax you owe:
- Set up your payment plan
You can set up a payment plan by using the ATO online services if you are an individual or sole trader, or if your income tax debt is below $100,000.
You can create your individual “myGov” account by signing up on the ATO website or app.
- A secured payment plan
If you cannot come up with a proper payment plan or have irregular of insufficient cashflow to be able to make the payment of your tax, you can set up a secured payment plan in which you can pay the debt by instalments with security against either:
- Your mortgage, or
- An unconditional bank guarantee.
- Financial strain in paying tax
Special consideration may be considered if you are struggling to pay back your tax debtdue to circumstances that are beyond your control, or if paying taxes would limit your ability to provide housing and food for you and your children. In these situations, the ATO may be able to help you clear a portion of the tax amount owed, or even the full amount. These are determined on an individual basis and must be discussed with an ATO agent.
- Natural disasters that have affected your finances
In the event of a natural disaster such as a flood, massive storm or a bushfire, the ATO can work with you to help you sort out your tax payments until you are able to pay them. Such arrangements can be made by calling 132 866.
- Businesses that need help
Your business may be struggling to pay its creditors on time and may be in a position in which retrenchment is on the horizon. In such an event, the ATO can help by offering free and confidential support services in order to keep your business afloat and help lead your company to better business operations.
For more information, or if you are in need of a professional tax accountant to help you with your specific tax requirements, contact us today.
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