DIRECT DEBIT FOR GIC-FREE PAYMENT DEAL

The Tax Office has extended the general interest charge (GIC) free payment arrangement for small business taxpayers (i.e. those with an annual turnover of less than $2m) with activity statement debts for another year to 30 June 2011.

If you have an activity statement debt, you may be eligible to enter into such an arrangement with the Tax Office to pay the debt over a maximum of 12 monthly GIC-free instalments. However, there are conditions which accepted taxpayers must abide by. Specifically, the Tax Office now expects you to pay the instalments by direct debit.

TIP: This concessionary measure does not extend to activity statement lodgement due dates. In other words, you must still lodge your activity statements on time, or face potential penalties.