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Tax Help for Small Businesses to Pay Tax Debt

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Small and medium enterprises (SME’s) with tax debts owed to the Australian Tax Office are likely to start feeling pressure to repay those debts by now. The ATO is expected to start ramping up actions to get those debts repaid. Debts to the ATO mounted up to $35.3 billion in the 2013-14 period and that was a 9.7 percent increase over the previous year. Because that amount is growing so fast and is so large, the ATO is going to have to start increasing their collection efforts and SME’s should be warned.

The debt amount has grown so large that the ATO will probably make the penalties for late debt repayments much stricter in the future. The ATO will hope that the tougher penalties on late debt repayments will motivate SME’s to pay their debts on time.

SME’s often have the capital to pay their debts to the ATO but have not managed their working capital properly. Those SME’s that have delayed making their debt payments have likely been making the short term decision to use their capital in their business instead of paying their debts.

Delaying paying debts to the ATO can get an SME on a dangerous path that can lead to severe penalties from the ATO. There are ways for SME’s to get the capital to pay their debts and keep their businesses running.

Tax Help for SME’s

There are bank and non-bank lenders that make loans available for tax help. Tax help loans are common and can be had at reasonable rates. A business just needs to apply.

Tax help loans from non-bank lenders are often easier to get and are less strict. SME’s should do everything they can to avoid having the ATO come after their assets to pay off their debts. In order to pay off the debts to the ATO a bank or non-bank loan can be taken to pay off the debt. This will allow the business to stay open and profitable while paying off the loan.

If your business has debts with the ATO then you should take action now. Tax help loans are affordable and available. It is much easier to pay off a loan to a bank or non-bank lender than dealing directly with the ATO. Reach out to a non-bank lender like the Australian Lending Centre to see how we can help you with your tax debts.

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Tax Debt Loans & Relief

Tax Time – How to get organised to make most of tax deductions

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It’s that time of the year again, filing for taxes and making the most of tax deductions. It also marks the end of the financial year.  It’s the time of sending paperwork to their respective accountants, the time when their tax returns must be compiled. Finding needed receipts can be a hassle if not a waste of time, and the situation is not something new to many Australians. In fact it is a routine every year. The general consensus is that paying taxes is a stressful time for most people, but it doesn’t have to be like finding a needle in a haystack every time. With some planning and preparation throughout the year, you can significantly reduce the amount of taxes that you owe.

The months of May and June provide a perfect opportunity to start getting organised and plan to make the most of those tax deductions. The following tips should help to guide you on creating a stress free plan, to get organised and maximise your tax deductions.

Planning for Maximum Tax Deductions

Claim any potential deduction that you are aware of: Know your potential deductions. A deduction is something that reduces the amount of your income that is taxed. These can include charitable donations, job-related expenses, interest paid on student loans and mortgages, energy-efficient home improvements and more. Make sure you keep track of all your assets and claim any potential tax deductions. You can also claim, if you’re into business, a tax deduction on pre-pay or stock up on supplies that you buy regularly like office equipment. Even bad debts are tax deductible. To know more about tax deductions you are eligible for, it is best that you review your tax form.

Know Potential credits you are eligible for: Being eligible for credits on taxes entitles you for a reduction on the actual amount of money you have to pay for your taxes. Examples are child tax credit, earned income tax and student tax credit. Furthermore any business with a turnover less than $2 million is potentially entitled to a range of tax benefits, like capital gains tax, income tax, GST and fringe benefits tax. Knowing potential credits may help you get the most from your tax deductions

Evaluate your Financial Position: Having a stable financial position is important in maintaining financial life and business. A stable financial position lessens your burden on taxes. More importantly, it will give you peace of mind knowing your finances are stable.

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Federal Budget 2015 – The Good and The Bad

Australian Federal Budget

The Australian federal budget changes announced on May 12th had many positive points as well as several negative points that you might have missed if you did not pay close attention and read the details.

Federal Budget 2015

The Bad

On the negative side, the federal budget axed large portions of the money devoted to combating climate change. Abbott’s government has reduced the funding to the Green Army, a group of tree planters that formed part of Abbott’s “Direct Action” policy aimed at reversing climate change.

The taxes collected from “indirect taxation” will really open your eyes when the figures are laid out clearly. GST alone is expected to bring in $54.285 billion while taxes on alcohol will bring in another $5.23 billion along with petrol’s $6 billion and tobacco’s tax revenue of $8.28 billion. Australia’s foreign aid has also been slashed 20%, down to $4.1billion.

African nations in need along with neighboring Indonesia will have their benefits cut the most. Special tax breaks for big families have been taken away to save the government $177.3 million. Some art programs will have their budgets cut entirely or trimmed significantly. FIFO workers will have some travel benefits slashed to close loopholes for those who were taking advantage of the generous tax concessions.

The Good

On the positive side of things, the government is taking the initiative to allow employee share schemes so that employers can attract vital staff with tax incentives on start-up company shares. The Abbott government is making it easier for Australia’s young people to access The Youth Allowance payments.

Small businesses will get a big boost by being able to write off $20,000 of their taxes for every piece of equipment they buy for their business. Shift workers will also get more family help from nannies through a $246 million subsidy.

There were some big changes made to the federal budget in the recent announcement and not all of the news was only positive or negative but together gives a picture as to which way the government is looking to spend or save the tax revenue it receives. Whether or not you agree with the new government’s new changes to the federal budget, it is important to know how it could possibly affect you and your business or family. No matter what side of the politics you are on, it will be interesting to see how these changes to the federal budget will affect the Australian economy.

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Tax Debt Loans & Relief

Business Owners: Done With Dirty Tax Debt

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[fusion_text]Tax season is a nail biter this year for many Australians. Through the year, business runs as usual, and then the bill comes. Like the end of a five-course dinner, the ATO check drops. OH MAN – There is no way that is payable unless you want to skip employee pay checks this month – as tempting as that is. Don’t let it sit and fester, seek a tax debt loan solution!

Don’t feel alone, the tax burden this year is heavy for many Australians. Particularly for small business owners who are unaware of the tax loop holes that the larger companies use. Yeah the big guys are making more than you and paying less for it, hmm, that seems unfair.

The regulations that are in place create an unfair market place for small to medium businesses. With the current tax laws, big companies are paying an effective tax rate of 10 percent or less. Nobody likes tax, but even more, nobody likes to know that the big business bullies are practicing tax avoidance and creating an unfair, noncompetitive market place. This is in spite of various business groups who have cautioned the Federal Government against routine tax avoidance for the effects it could have on the economy.

Company directors experience tax debt difficulties for many reasons, ranging from late debt payments, lack of tax insight, to poor advice from experts. Don’t let yourself drown in tax debt, there are many off ramps, including tax debt loans. Work with experts who have an extensive network of private funding at their disposal. We know tax debt loans and want to help you make the business tax cutoff on October 31st!

If you find yourself in this situation, reach out to the business loans experts, and avoid the stress this season. Hear how we worked with Alan, an Australian small business owner, helped him pay off his tax debt and return to a positive balance sheet.

Tax Debt Loans Saved Alan’s Business

He first set out to approach his business bank for a loan; however, they would not touch him, because:

  • He had defaulted on a loan
  • He had no business savings
  • He had a large tax debt

All of the factors combined to result in a rejection to his loan application. Just like his primary business bank, all the other banks declined his loan applications as well.

He was amazed to find that the Australian Lending Centre offered an ideal solution for his needs. We help business owners pay off their tax debts by understanding the small businesses circumstances and tailoring tax debt loans to their individual cash flow needs.

After calling our offices and speaking to a friendly consultant, Alan was able to secure a business tax debt loan that not only provided him with the funds to cover his tax debts he could also pay wages this month.

This approach helped Alan to get rid of the tax debt that was weighing heavily on his shoulders and to put the business back into profitability. Tax debt loans saved the day and his employees rejoiced as they were handed the paycheques they deserve.

Take Advantage of Tax Debt Loans

If you are struggling to repay your tax debt, apply for a business tax debt loan from the Australian Lending Centre.[/fusion_text]

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Budget Good News for Struggling Working Families

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The new Budget signals a sigh of relief for Australian families struggling to meet costs, as Treasurer Swan discerned “This is a budget which tips the scale back in favour of Australian families”.

The Government has released its first Labor budget in over a decade, which will cut taxes and promote health, education and infrastructure. This is good news for working families and struggling working families and the lower income earners, while reductions to harness inflation will be aimed at the higher income earners of the Nation.

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