Are you a small business owner with overdue tax returns or activity statements? Here’s the silver lining you have been waiting for—the Australian Government has recently announced a timely initiative: the Small Business Lodgment Penalty Amnesty Program. This opportunity not only helps you get back on track but does so without the added weight of certain penalties.
What is the Small Business Lodgment Penalty Amnesty Program?
Announced as part of the 2023-24 Budget on May 9, 2023, this program is specifically designed to help small businesses re-engage with the tax system. The primary aim is to assist you in updating overdue income tax returns, business activity statements (BAS), and fringe benefits tax (FBT) returns.
One of the most significant benefits of this program is that penalties for late lodgment will be automatically remitted, relieving you of extra financial burdens.
It’s important to note, however, that while penalties are waived, the general interest charge will continue to apply.
To qualify, your business must meet the following criteria:
- Have an annual turnover of less than $10 million at the time the original lodgment was due.
- Have overdue forms that were initially due between December 1, 2019, and February 28, 2022.
- Lodge these overdue forms between June 1 and December 31, 2023.
Who Does Not Qualify?
The amnesty does not apply to privately owned groups or to individuals controlling assets with a net wealth exceeding $5 million.
To make the most of this program, begin by reviewing your records to identify any overdue lodgments. Should you require assistance, the team of qualified accountants at MKG Partners are available to offer personalised guidance. We can help you complete the lodgment process within the amnesty period, ensuring you stay compliant while understanding your net tax position better. So don’t hesitate—reach out to us today!