Financial Hardship and Your Taxes
Did you know the tax office will assist you when you have financial hardship? Many times we find ourselves in a situation we just didn’t expect. As tax professionals, Hillyer Riches wants to let you know about some of the programmes the tax office has in place for unexpected hardship.
If you are struggling to pay your taxes or tax payments, the tax office recommends contacting them as early as possible. They can work with you to make payment arrangements and find solutions before your debt becomes unmanageable. Being honest and open with them is always the best answer.
Automated Payment Plan
When your tax debt is less than $50,000 you can choose online tax services to arrange payment of overdue tax amounts or late payments. These instalment plans may help ease your financial obligations or spread out a large debt into smaller payments that could ease financial stress. You can sign up for these instalments on the ATO website and you’ll need to set up a myGov account.
When your debt is less than $25,000 you can choose to set up a payment plan over the phone. The tax office has an easy calculator on the website to assist you with what you can afford and the interest that will be charged. The number to ring is 13 28 65 and make sure to have your TFN handy.
Contact the Tax Office
If you are having trouble with the website or can’t seem to work out the automatic payments, give the ATO a call. They can discuss the options available and help you with your individual situation. The phone number is 13 11 42.
If you have faced a natural disaster or emergency situation like a flood, fire or damaging storm, the tax office is there to help. They are committed to understanding each person and how they can help with alleviating stress in hard times. The disaster number is 13 28 66.
If you have recently lost your job, or your situation is dire, the tax office understands. If, for instance paying your tax will mean you would not be able to care for your family, you may be able to qualify for hardship status. Depending on your circumstances, the tax office may even release you from some or all of your debt. The hardship number is 13 11 42.
If you have any questions about hardship, payment plans or disaster relief, please give one of our Caulfield tax professionals a call.
Hillyer Riches Management Pty Ltd is a Corporate Authorised Representative (No 466483) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. AFSL / ACL No. 223135.This document contains general advice only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.
Check out this post about ATO Updates on CoronaVirus.