Frequently asked questions - Taxes
What do I need before applying for taxation hardship relief?
You must have received a notice of assessment of tax or duty from Revenue NSW. Hardship applications will not be considered until the final tax or duty liability is determined. If your assessment for taxes or duties is subject to an objection or appeal this will need to be finalised before the Board can consider your application.
The Board does not have the authority to provide relief from future liabilities, for example it cannot provide an exemption for stamp duty on a property purchase.
What can the Taxation Hardship Review Board do?
If the Board is satisfied you have a genuine case for hardship, it has the authority to grant the following relief:
- waive the payment of duty or tax either in part or in full
- defer the payment of duty or tax in part or in full
- set payment arrangements specific to your circumstances
- refund the payment of duty or tax where it's already been paid.
There is no right of objection or appeal to the Board's decision under the Taxation Administration Act 1996.
Where can I get an application?
You must talk to an officer from the Debt Management Branch of Revenue NSW, who will refer genuine candidates for hardship relief to the Secretary of the Board. The Secretary will forward an application to you.
Note: all liable parties will be required to complete a separate application form. Only completed and accurate application forms will be referred to the Board for its consideration.
What is serious hardship?
Serious hardship is where the payment of the tax or duty would leave you unable to provide your immediate family with the basic necessities of food, shelter, clothing, medical expenses and other basic requirements.
What factors are considered in determining serious hardship?
When deciding whether or not to grant tax relief, the Taxation Hardship Review Board considers the following factors when deciding whether or not to grant tax relief:
- whether you can pay your tax or duty by re-arranging your finances
- your overall financial position as shown by income and expenditure and asset and liability statements
- whether your current financial difficulties are short-term
- what you have done to try to pay your liability
- any other factors to support your case for hardship.
How long will the decision take?
The Secretary to the Taxation Hardship Review Board will send you written confirmation that your application has been received and advise you when your application is likely to be considered by the Board. The Secretary may request additional information to help the Board with its deliberation.
A decision will be made on the day of the Board meeting or further information will be requested by the Board to assist it in making its decision. You will be notified in writing of the Board's decision.
What happens to the debt in the meantime?
Once a hardship application is received by Revenue NSW, any further debt recovery action ceases until the Board makes its decision.
If your application for relief is unsuccessful, interest may be charged from the due date of the tax or duty assessment until the debt is paid in full.