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Australia: Updated FAQs provide tax information for large business (COVID-19)

Australia: Updated FAQs provide tax information

The Australian Taxation Office (ATO) has updated and expanded a list of “frequently asked questions” (FAQs) concerning implications of the coronavirus (COVID-19) for large business.

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The updated FAQs include information on:

  • Filing (lodgement) deferrals
  • Companies with substituted accounting periods
  • Significant global entity (SGE) penalty


Overview of tax relief actions

To address the challenges faced by the community at large, over the past week, federal and state governments in Australia have announced spending stimulus packages and tax relief measures aimed at supporting the community and businesses through some of these challenges. The federal government on 24 March 2020 passed legislation on a number of measures including early access to superannuation, cash-flow assistance to employers, and increasing the instant asset write-off and acceleration of depreciation deductions.

The ATO also made its own announcements regarding administrative measures to assist Australian businesses that are affected by the COVID-19 pandemic. A number of these administrative measures include the ability for those businesses affected by COVID-19 to request deferral of their payment and/or lodgement obligations. However, the ATO has not provided a blanket deferral of either payment or lodgement due dates. Requests for extensions of time will be considered on a facts-and-circumstances basis when requested by a taxpayer.


KPMG observation 

Taxpayers need to note that the relief measures are administrative in nature, and involve the exercise of discretion by the Commissioner of Taxation.  Automatic implementation cannot necessarily be expected. 

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