The #Bush Fire in New South Wales and other States is burning uncontrollably, and the air quality in Sydney has deteriorated to a degree where people need to wear a mask when going out. The government had announced that unless necessary, people with asthma, heart, and lung issues should stay at home and close their windows. Australian Taxation Office recently issued a new rule about tax affairs extension that allows those bushfire-affected areas to have an extension for both the business activity statements and tax return to 2020.
I usually play tennis in the morning from 7 am, however, recently the air quality has been so bad that it is challenging to play. We would wish that there would be rain soon, and the bushfire will get better.
The business activity statements from Jul to September 2019, can be extended to 21 January 2020; it usually is due on November 2019.
Aside from businesses, individuals in impacted areas who have lodged their 2018–19 income tax returns and have received a bill that would generally be due on 21 November 2019 now have until 21 January 2020 to pay.
If the bush fire destroyed your tax records, then please come and talk to us, and we will help you to represent the Australian Taxation Office, and reconstruct the data.
If the expenses invoices had been lost, then it might be possible to claim the expenses without the substantiation. However, it is essential to get clarification from the ATO.
If your personal use assets – such as your home or household goods – are damaged or destroyed in a disaster, there will generally be no tax consequences if you receive an insurance payout.
However, if your income-producing assets are damaged or destroyed, you’ll need to work out the correct tax treatment of insurance payouts you receive and your costs in rebuilding, repairing, or replacing the assets.
The automatic extension approval process applies to the following areas
Automatic deferrals have been put in place for the following 16 local government areas impacted by the bushfires:
New South Wales
- Clarence Valley
- Coffs Harbour
- Glen Innes
- Mid Coast
- Port Macquarie-Hastings
- Richmond Valley