Hello Chasers,
One of the ways to reduce your cashflow outgoings is to avoid overdue payments which can attract late payment fees and even interest!
By paying their tax bill in full and on time, taxpayers can avoid paying the general interest charge (‘GIC’), which is currently 11.34%, and which accrues daily for any overdue debts.
The ATO advises taxpayers that, if their business is dealing with financial difficulties, there are some options to help make their tax bill “less taxing”.
Taxpayers who are struggling to pay in full or on time may be eligible to set up a payment plan. If they owe $200,000 or less, they may be able to do this themselves using the ATO’s online services. If they cannot do so, or they owe more than $200,000, they should contact the ATO (or their tax professional) to discuss their options.
Taxpayers can ask the ATO to remit their GIC. When the ATO considers this request, it will take into account whether the tax bill was paid late because of circumstances that were:
- beyond the taxpayer’s control, and what steps the taxpayer took to relieve the effects of those circumstances; or
- within the taxpayer’s control, but led to results that the taxpayer could not foresee.
Taxpayers (and tax agents) can refer to ‘remission of interest charges’ on the ATO’s website for more information in this regard, including instructions on how to download the new GIC remission application form and submit it using secure mail in Online services for business.
If you would like our help with managing your ATO debt please contact our Team on 03-55612643.
Have a great day!
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