• New Wave Accountants

Tips for Negotiating With the Australian Taxation Office

Besides taking care of the business and their employees during this tough business season, entrepreneurs also need to deal with their taxes. It is a major responsibility and one of the top problems that business owners face nowadays.

In case you didn't know about it, you can actually negotiate with the Australian Taxation Office if needed. If you want to know in what aspect you can ask for help and what you need to do to prepare for it, this article will give you some tips and information that can help you manage your taxes better!

Australian Businesses and COVID-19

Due to the effects of lockdowns and the limitations set by the government to prevent its spread, most businesses failed to meet their target sales for the year. They are left with outstanding debt, huge taxes to pay, and a highly uncertain future.

The Australian Taxation Office fully understands how COVID-19 affected businesses in the country. As such, they are willing to discuss the current situation with anyone who needs assistance! They even appreciate it if the concerned party will let them know about their case ahead of time; that way, they can offer the best option to deal with their problem.

What to Know: Options for Payment Arrangement

Even if the Australian Taxation Office is lenient with the payment terms, they expect you to still submit your activity statements and tax returns as scheduled. It will serve as proof to them that you are aware of your responsibilities and that you are doing your best to meet them.

ATO is willing to work with you in finding the best setup that will make your tax payment terms more manageable. Because of COVID-19, the ATO now offers interest-free payment arrangements for the business owners.

Here are the possible options they will offer when it comes to outstanding debt:

  • Late payment - You will still pay your dues, but you cannot do it on the pre-set assigned deadline.

  • Instalment payment - You will be allowed to pay your dues in the timing you agreed at and in the amount you are sure you can provide. When deciding for the amount, make sure that your business can sustain its everyday business expenses. Also, consider the other future payments you have to pay beside this year’s pending! If you opt for the instalment option, your payment term can be stretched out from six months to two years.

How to Prepare for the Negotiation

  1. Provide your reason - You only need to be honest with them about your situation. Tell them what your business is going through and until when you expect the effects to take place. From this shared information, you are helping the ATO develop the best payment setup for your circumstances.

  2. Prepare all information and documents to support your claim - You need supporting documents to back up your claims, so make sure to have them before having the business talk with the ATO. Expect them to request additional information every once in a while. They may include your profit and loss statements, report for income and expenses, and other supportive documents regarding your bank loans, and more.

Besides this adjustment, the tax office has numerous programs designed to help businesses recover from their situation. Visit their website to learn more about these initiatives!


The recent time has been challenging indeed, but the Australian Taxation Office is ready to help struggling businesses through their adjusted payment terms. If you are a business owner who needs this assistance the most, make sure to visit the office with your documents and explanation. They will help find the best solution to help save your business.

If you need a tax accountant from the Gold Coast to help you prepare your needed documents, then we can help you out. New Wave Accounting is dedicated to helping small businesses in Australia minimise their tax and maximise their profit. Call us today to learn more about our services!

2 views0 comments

"We take a holistic approach toward each of our business clients. Our clients consistently experience more profit, improved cash flow, and less tax."

Sign up to receive our FREE DOWNLOAD 

"101 Strategies for Business Owners to Save Tax" 

3d cover .png