From 1 July 2017, a new tax measure will come into play for small businesses. We’re here to help prepare you for this tax change.

Businesses that need to engage with the Australian Taxation Office (ATO) to get their tax debts under control. Otherwise they could have their tax debt information disclosed to credit reporting agencies by the ATO.

Initially, the ATO will be applying this new disclosure measure to businesses with a tax debt greater than $10,000. This is if the debt is in default (at least 90 days overdue). If tax debt are disclosed by the ATO, an individual’s credit rating will be adversely affected for the next 5 years.

What do you need to do?

For tax debts over 90 days, you need to secure a payment arrangement with the ATO before 30 June 2017. This is regardless of how big or small the tax debt is.

We also encourage everyone who has outstanding tax payments to get these paid as soon as possible.

Tax debts, once disclosed to credit reporting agencies, will go on your credit rating file for 5 years. This can greatly impact your chances of securing finance in the future or enter in to credit arrangements with your suppliers.

So, it is important to get your tax debts under control as soon as possible. A this means well before 1 July 2017.

How we can help you!

As your tax agent, we can help you negotiate an effective payment arrangement with the ATO. This can be done without negatively affecting cashflow!

Get in touch with us today to discuss your options and get control of your tax debts.

 

General advice disclaimer
General advice warning: The advice provided is general advice. Only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
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