ATO Lodgement Amnesty Program: Critical Update as December Deadline Approaches

Henry Kazar

Building on our previous insights shared by John Laird, Principal Government Advisory, on June 26, 2023, this article provides a critical update and further elaboration on the Australian Taxation Office (ATO) lodgement amnesty program.

Building on our previous insights shared by John Laird, Principal Government Advisory, on June 26, 2023, this article provides a critical update and further elaboration on the Australian Taxation Office (ATO) lodgement amnesty program. As the end-of-year deadline of December 31, 2023, draws near, it’s crucial for businesses grappling with statutory debts to the ATO to be fully informed about the impending closure of this program.

Recap and Expansion on the Amnesty Program

Initially outlined in our June coverage, the ATO’s amnesty program was inaugurated as part of the 2023-24 Budget initiatives. Targeting small businesses with annual turnovers below $10 million, this program offers a reprieve for overdue tax returns and activity statements due from December 1, 2019, to February 28, 2022. This opportunity is significant for businesses at risk of penalties due to delayed lodgements. However, it’s crucial to note that exclusions apply, including for certain wealth groups and obligations beyond the scope of income tax and activity statements.

Strategic Steps Towards Compliance as Deadline Nears

Completing Overdue Lodgements: The focus should be on ensuring all overdue tax documents are filed before the amnesty deadline. This proactive step is crucial to avoid accruing penalties and further financial strain.
Navigating Financial Liabilities: If lodgements lead to substantial liabilities, businesses should consider the ATO’s payment plan options. These plans offer a tailored approach, considering the business’s financial health and future obligations.
Deep Dive into Payment Plan Options: For businesses with debts up to $100,000, the ATO allows the establishment of payment plans online or via registered agents. It’s worth assessing the flexibility and terms of these plans to align them with your financial strategy.

Ongoing Compliance and Financial Management

Post-amnesty, it remains essential for businesses to maintain tax compliance. This includes the timely submission of future returns and addressing liabilities as they arise. It’s also important to manage the General Interest Charge effectively, which can be minimized through strategic payments.

Cathro & Partners are experts in providing business and personal insolvency and restructuring services that help to create and preserve value. We can assist with restructuring, turnaround, insolvency, safe harbour, secured enforcement services, pre-lending and bankruptcy services

Contact us:

Henry Kazar, Principal, Cathro & Partners

Ph: 02 9189 1723

Email: henry.kazar@cathropartners.com.au

Further detail can be obtained at:

Stamford Capital on the current lending and property market

Commercial Property Finance: A renewed sense of optimism After several years of turbulence, the commercial property finance market has entered 2025 with renewed, if cautious, optimism. The economic headwinds of recent years, including rising interest rates, global instability and shifts in asset class performance, prompted many investors and developers to

Meet Chris Bergin – New Principal at Cathro & Partners, Melbourne

We’re pleased to welcome Chris Bergin to Cathro & Partners. Joining the team in February 2025, Chris brings with him 18 years of experience across a broad spectrum of corporate and personal insolvency matters. His background includes work in voluntary administration, receiverships, liquidations, safe harbour advisory, and complex restructuring assignments.

Understanding Section 588FP of the Australian Corporations Act 2001: Security Interests in Favor of Company Officers

Section 588FP of the Corporations Act 2001 (Cth) addresses the validity of security interests granted by a company to certain related parties, particularly its officers. This provision is designed to prevent company officers from securing personal advantages over other creditors, especially in the period leading up to an external administration.