CORONAVIRUS STIMULUS- What Sole Traders Can Do Immediately to Access Funds
Although sole traders who do not employ staff have missed out on any direct benefits from the stimulus measures announced so far, there are two things they can do in the March quarter to access cash fast.
The ATO is allowing quarterly GST reporting businesses to opt into monthly reporting in order to get quicker access to GST refunds they may be entitled to. If , for example, you are a sole trader that offers GST Free services and you are in a GST refund position each quarter, you can move to reporting on a monthly basis and access those refunds much quicker.
Businesses will be allowed to vary pay-as-you-go (PAYG) instalment amounts to zero. Businesses that vary their PAYG instalment to zero in the March 2020 quarter will also be allowed to claim a refund for any instalments made for the September 2019 and December 2019 quarters. However, this will mean that when the FY2020 tax return is lodged that no tax will have been paid towards that return.
The ATO will also look to remit any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities, and allow affected businesses to pay their existing and ongoing tax liabilities by allowing them to enter into low-interest payment plans.
Unlike the bushfire relief measures, which applied automatically to particular geographic areas, assistance measures for those impacted by COVID-19 will not be automatically implemented.
Instead, businesses and their advisers will be required to contact the ATO on its 1800 806 218 Emergency Support Infoline to discuss their situation.