Read on for possible solutions.
As of July 2017, the Australian Taxation Office will have the ability to lodge a default on your credit file for not paying tax.
If you have an outstanding balance of $10,000 or more and you haven’t engaged with the ATO to address it for 90 days or more, the ATO will be able to lodge a default with credit reporting agencies. This will last as mark on your credit file for five years.
These changes could have a significant impact on businesses, especially when it comes to securing finance.
So what can be done to avoid the above?
- Work with your Accountant or Bookkeeper on your budgeting
- Keep up to date with your Tax Payments
- If there is a Tax debt – communicate with the ATO and arrange a payment plan that can be met
- Talk with your finance broker, they may have suitable finance options to clear the ATO debt such as unsecured business loans
- Review current finance arrangements with your finance broker; refinancing may be an option to reduce outgoings
- Operational costs – can savings be made to improve cashflow?
- Debtors – can you reduce your payment term period, to help get revenue in sooner
Today, various funders will still consider providing funding if the business is under an ATO debt arrangement if they can see the ability to service the loan.
The most important thing is to keep being proactive; often solutions can be found when dealing with the challenges early.
For a no-obligation chat with one of our friendly Bizpal Finance Brokers, please do not hesitate to contact us on 1800 011 981.