May 16, 2022
Today’s economy is more than challenging to say the least and being a business owner pushes the boundaries with your commitment on all counts, mentally, physically and financially and there is no doubt that after the Federal Election there will be further economic change as we see a further increase in interest rates in the consumer & commercial sector and the tightening up of economic policy across all sectors.
Agility Financial services operates across a large range of businesses and is in a perfect position to observe the impacts and changes throughout the economy and most importantly small business.
There are far too may changes happening in the market to list them all in this brief news segment, however, one area that is of particular concern and needs the attention of all business owners immediately is debt relating to ATO, superannuation and works compensation premium payments .
This month’s announcements were made by the ATO and credit reporting agencies that ATO debt will be reported on directors credit files and the business credit files. This has been in the wind for some time now and is just another step in the tightening up of policy and a step forward in accurate credit reporting.
The ATO made an announcement last month that they are owed $4 Billion dollars in unpaid GST and PAYG and need to pull it in now before it becomes a further problem. If you or your accountant has not had a call from the ATO yet if you have outstanding tax debt, get ready for it as it will happen. We have been advising our clients since January and they are now telling us its happening.
The ATO is a creditor like any other and they need to be paid on time, given the difficulty of running a business particularly throughout the last two years with the fall out from the COVID pandemic which is not anywhere near over yet and the hang over will be around for years to come as we work through the changed business environment .
The ATO is aware that businesses have been using the ATO as a “no application required “loan arrangement with low interest rates for late payment but it is safe to say these days will be numbered so more than ever before getting your financial house in order is important and even just as important is forward planning your business needs, which will included asset purchases, funding for change and growth and restructuring and reducing unnecessary or expensive debt.
We would welcome your inquiry if you have any queries or questions about the above content or would like further information about economic changes that could impact your business operations or funding requirements, for a no charge or obligation chat please contact me personally on 0457551662 .
Wishing you business success!!!
