There’s currently $19.2 billion owing to the Taxation Office!
The ATO still has not worked out how to get taxpayers to pay but it is trying various methods. In the end, it will just bankrupt individuals or liquidate companies. This will harm small businesses the most as they tend to use the ATO as a “lender of last resort.”
" Only 65.2% of small businesses pay their tax on time. "
Do not think that this is a clever idea. The interest rate being charged is well above bank rates. If you want to borrow money, the lender now requires a copy of your integrated statement from the ATO. The coming step is what the bureaucrats are calling Single Touch Payroll. You calculate your pay to employees and at the same time as you pay them then you also pay the PAYG that you have withheld and also the superannuation contribution. They are making this sound like a boost to your efficiency but it is really just to ensure that the super and tax get paid on time.
The administration cost of tracking and avoiding paying creditors will not increase your profits. If you are having problems paying your tax on time then you need to talk to us about solving your cash flow problems.
Solutions may include:
- speeding up how you generate and collect your income;
- increasing the capital in your business;
- different ways of borrowing money.