After several discussions with the federal government, the federal government has made amendments to the disaster affected people. The government has decided on the disaster relief payments for all the individuals and businesses being impacted by the devastating bushfires and other similar natural disasters. This decision would make every dollar to be paid for the affected people. Also, the businesses and the primary producers are also supportive of the aid to be provided and assisting in the cause of the livelihood rebuild.
The Federal Government made several changes for the disaster relief payments which is being received by the individuals as a result of the 2019-20 bushfires tax-exempt.
The following parameters would be considered to assess the are non-assessable and non-exempt income groups:
If the tax-payers are identified into the impacted postcodes and want the benefits of exempted taxes, there are automatic payment methods that need to be applied without any deferrals. There are automatically deferred income tax, activity statement, self-managed super fund (SMSF), fringe benefits tax (FBT) and excise return lodgments along with their associated payments until May 28, 2020.
With ATO, the tax-payers would be able to:
If the tax-payers are included in the identified impacted postcodes and would be subjected to the audit process, the accounts would be temporarily suspended. In case the members wish to continue their audit, they need to contact ATO or ask any audit officer for further assistance. In case of risk identification for fraud, ATO would continue reviewing prior to any refund issue.
Payment and lodgment deferrals for people in bushfire impacted postcodes don’t apply to large withholders. Large withholders are those who have previously withheld more than $1 million tax annually or are part of a corporate group that has.
In the case of business or residential address being amongst the bushfire impacted postcodes, ATO will automatically prioritize the refunds for the applicants. There is no need to ask for the refund prioritization unless in case of the debt.
Concluding, the Federal Government is taking great pains to reduce the burden of the debt for the disaster affected people and this step is one of them.
What is a self managed super fund (SMSF)?