On 1 June 2009, the ATO introduced two initiatives to help small businesses that are struggling to manage their activity statement payment obligations. These measures have been extended for a further 12 months until 30 June 2011.

The ATO is extending the 12 month general interest charge free concession for mutually acceptable and sustainable payment arrangements entered into for activity statement (i.e. BAS) debts negotiated from 1 July 2010 to 30 June 2011.This concession may also apply to payment arrangements negotiated prior to 30 June 2010 that are subsequently renegotiated.

Small businesses experiencing cash flow problems can also request an interest free payment deferral on their next activity statement. Businesses that pay quarterly and annually may be granted a deferral of up to two months, with those that pay monthly eligible for up to one month.