As yet another reflection of tough business conditions, businesses with an annual turnover of less than $2 million can enter a 12 month interest-free arrangement to repay business activity statements debts. Under the proposals:- Business with an annual turnover of less than $2 million with an activity statement debt can apply for a general interest charge (GIC)-free payment arrangement. Any arrangement would be valid until 30 June 2010. Businesses will have the GIC waived for 12 months, provided the payment arrangement is maintained. Businesses can also request deferral of payment on their next Business Activity Statement. Businesses with short-term cash flow problems that pay quarterly and annually may be granted a deferral of up to two months, whilst those that pay monthly are eligible for up to one month. Activity statements still have to be lodged on time, although no interest applies during the deferral.
19th-August-2009 |