A temporary increase to the write-off threshold for qualifying individuals aims to ease financial stress resulting from COVID-19.
This change to the threshold from $50 to $200 for the 2020 income tax year only applies to qualifying individuals - customers who only receive reportable income and an automatically calculated assessment, not customers who are required to file an IR3 tax return.
We have existing legislative authority to consider treatment of small debts for IR3 customers. For further details you can refer to Standard Practice Statement 18/04.
Individuals who have been issued a 2020 IR3 but have only received reportable income will be eligible for the increased write-off, but we will need to update their assessment type. You will need to send us a message in myIR (or you can contact your account manager if you're a tax agent) to have your assessment type updated so the write-off can be applied.
It is important to remember each customer will have circumstances unique to them and there is a range of additional tax relief available for the 2020 year for those whose income has been affected by a downturn in business due to COVID-19.