What we can expect from the ATO in 2021
2020 was a lenient and generous year for the ATO with respect to small business. Not surprisingly as a result the ATO’s revenue target took a hit and debt levels increased 18% from $45 billion to $53 billion.
With the worst of the pandemic behind us in Australia and the economy picking back up, it’s reasonable to assume that the ATO will be less lenient on small businesses going forward.
If you cast your mind back to early 2020, small and medium-sized businesses (SMEs) were firmly in the ATO’s cross hairs. With a staggering 20% of Australian small businesses on a payment plan, the ATO responded by meting out harsher penalties for missing tax payments and disclosing tax debts to bureaus as part of comprehensive credit reporting changes.
With this in mind, as the ATO looks to claw back some of its revenue shortfall, small business owners who have enjoyed a year of deferrals, subsidies and safety nets are right to be shifting uncomfortably in their seats.
Where will the ATO focus their efforts? As a starting point, likely on recouping outstanding capital gains tax and late lodgement of activity statements and tax returns. The ATO will almost certainly focus on educating businesses about how they can help, while disavowing them of the idea that they are a quasi-bank and source of cheap funding.
There are numerous straightforward refinancing solutions available for SMEs to offset substantial tax debt and avoid severe penalties. If you’re a white-collar professional with recurring revenue, we have specifically developed products to help you monetise that revenue and eliminate any outstanding debt with the ATO (or otherwise), so you can get back to doing what you do best.
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If you would like to find out about how we can help your business grow with our unique loan solutions for brokers, financial planners, accountants or rent roll business owners please contact us on 1300 139 003 or at email@example.com