Australian Government Announces Small Business Package

by Mary Swire, Tax-News.com, Hong Kong

28 October 2008

The Australian government has assured small businesses that the Australian Tax Office (ATO) will take a more flexible approach to dealing with their tax obligations during the current period of economic uncertainty.

The assurance was made as part of a wider package of measures announced by Prime Minister Kevin Rudd last week, which aims to support small businesses struggling to come to terms with the financial crisis.

In a joint statement with Minister for Small Business Craig Emerson, Rudd said that the ATO "is committed to working with small businesses that are having difficulty in meeting their tax obligations, including often allowing for tax debts to be paid by instalments over a period of time."

"If businesses are having problems, they should contact the Tax Office," the statement added. "Assistance offered would be based on the taxpayer’s individual circumstances."

Other measures announced by the government last week included an AUD4m programme to give small businesses advice and support through Business Enterprise Centres and other registered business organisations, and a guarantee of on-time payment for new small businesses' contracts with government departments up to a value of AUD1m from December 1, giving firms the right to charge penalty interest if payment is not received within 30 days.

The proposals have been welcomed by the Australian Chamber of Commerce and Industry, which represents about 280,000 small businesses.

"Allowing the Australian Taxation Office more flexibility in dealing with small business tax obligations is also a practical response," the ACCI said.

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