The bushfires in New South Wales and other states continue to burn uncontrollably. Sydney’s air quality has deteriorated so much that people must wear masks when going outside. The crisis has also affected tax affairs for individuals and businesses in impacted areas.
Government Advisory for Health and Safety
The government advises people with asthma, heart, and lung issues to stay indoors and keep their windows closed unless absolutely necessary.
ATO Extends Tax Deadlines for Affected Areas
The Australian Taxation Office (ATO) introduced a tax extension rule for bushfire-affected areas. This rule extends business activity statements and tax return deadlines to 2020.
Impact on Daily Life
I usually play tennis at 7 AM, but the poor air quality has made it difficult. We hope for rain soon to improve the situation.
Business Activity Statement Extension
Businesses can extend their activity statements from July to September 2019 until 21 January 2020. The usual deadline was November 2019.
Extended Deadline for Individuals
Individuals in affected areas who lodged their 2018–19 tax returns and received a bill due on 21 November 2019 now have until 21 January 2020 to pay.
Assistance for Lost Tax Records
If the bushfire destroyed your tax records, we can help reconstruct the data and represent you to the ATO.
Claiming Expenses Without Invoices
If you lost expense invoices, you might still claim deductions without substantiation. However, you should confirm eligibility with the ATO.
Tax Implications for Damaged Assets
If bushfires damaged or destroyed your personal assets, such as your home or household goods, insurance payouts usually have no tax consequences. However, for income-producing assets, you must determine the correct tax treatment for insurance payouts and the costs of rebuilding or repairing them.
Automatic Tax Extensions for Affected Areas
The ATO has granted automatic deferrals for tax obligations in 16 local government areas affected by the bushfires.
New South Wales
- Bellingen
- Clarence Valley
- Coffs Harbour
- Glen Innes
- Severn
- Kempsey
- Inverell
- Mid Coast
- Nambucca
- Port Macquarie-Hastings
- Richmond Valley
- Tenterfield
- Uralla
- Walcha
Queensland
- Noosa
- Livingstone
If you live outside of these areas and believe you had been affected by the bush fire and need a tax affairs extension, please come and talk to us at 0410-829-900 and we will help you to seek an extension.
