To support businesses and individuals impacted by COVID-19, the Government has recently passed legislation to allow us to write-off use-of-money interest (UOMI) on payments due on or after 14 February 2020. This will be done at our discretion and only apply to taxpayers whose ability to make a tax payment on time has been significantly adversely affected by the COVID-19 outbreak.
This means affected and eligible taxpayers will only have to worry about paying their core tax debt and won't have to worry about paying interest as well.
We may agree to write-off UOMI at our discretion, if we consider a business or individual has had their ability to pay tax on time significantly constrained by COVID-19. This covers all payments to us where UOMI is charged, whether they're taxes (such as income tax or GST), or other payments (such as Working for Families).
You do not have to be in a particular region or industry to get this relief.
You may be eligible for a UOMI write-off if you or your business:
- has been significantly affected by COVID-19
- has had income or revenue reduced by at least 30% compared to the same month 12 months earlier
- have explored other options for financial support, such as talking with your bank about additional finance or re-negotiating other loans/overdrafts.
UOMI could be remitted for a maximum of two years past the date of enactment, but the actual length will depend on the circumstances of each business or individual.
Requesting a use-of-money interest write-off
We are currently working on further guidance for how to request a UOMI write-off for eligible taxpayers. We'll provide further information here as soon as we can.
There is no need for you to do anything immediately. However, if you would like to find out more about this change or register your interest in a UOMI write-off, you can contact us. As our phone lines are currently experiencing unprecedented volume, we recommend you contact us through myIR where possible.
If you have a tax agent, we would encourage you to start talking with them about the ways you can reduce or delay your payments to us. Your tax agent will understand your financial situation, the various types of relief that can be obtained through us, and how to obtain it.