Receiving a tax bill as a business owner may feel daunting but rest assured you aren’t alone.
Estimates show that small businesses owe more than $12 billion to the Australian Tax Office (ATO). The good news is, there are ways to get back in control.
These steps can help you clear your tax debt, even if you don’t have the cash up front.
While it’s tempting to ignore a repayment notice, it’s crucial to act early. By engaging with the ATO to manage your debt, you could avoid having your information disclosed and impacting your credit rating.
Keep in mind that overdue debts will incur a general interest charge (GIC). This interest is calculated daily on a compounding basis and can quickly add up.
Depending on your circumstances, you may be eligible for a debt repayment plan with the ATO. This is where you agree to pay back the debt in instalments over a specific period.
While this may seem like an easy solution, interest may still apply on the unpaid debt. Try the ATO’s online calculator to estimate affordable repayments and interest charges
While many banks will not refinance tax debt, free-thinking lenders like Liberty can help businesses structure their finances to pay out the debt.
Obtaining expert advice from a trusted accountant, broker, or other professional is essential to helping you get things back on track.
A Liberty Adviser can help you explore your debt refinancing or consolidation options.
Speak with your local Liberty Adviser today to find a repayment solution that suits your needs.
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