In a speech given to the Council of Small Business of Australian, the Tax Commissioner spelt out new measures to help businesses with an annual turnover of less than $2million that are struggling to manage their tax debts in the current economic climate.The tax office is committed to helping small business by offering 12 month general interest charge free arrangements and deferring the payment date for activity statements.

The tax office does not want the GIC or temporary cash flow problems to be the difference between a company surviving and being able to meet its tax and superannuation obligations or becoming insolvent and enterning into liquidation.

Businesses in trouble and wishing to negotiate a GIC free installment arrangement for a maximum of 12 months should contact the ATO on 13 11 42. Applications for the GIC free payment arrangement will be accepted from now till 30 June 2010.

The tax office is also offering small business with temporary cash flow problems the chance to defer the payment date of their activity statement liability.

Businesses that pay quarterly and annually may be granted a deferral of up to 2 months and those that pay monthly will be eligible for up to 1 month deferral. Activity statements will of course have to be lodged on time however no interest will apply for the period of the deferral.