ATO declares war On Small Business
The above is the feeling by many in small business in Australia today.
After struggling in a very difficult and uncertain economy small business needs help and not more challenges. The following factors are contributing to the stress levels rocketing for small business.
1. ATO Trading Terms Back to Normal
Generous interest free loans have previously been provided by the Australian Taxation Office (ATO) to help get business back on track. Some businesses have relied on these "loans" to help them run there business. Like most good things, they came to an end to soon. The ATO has reverted to normal practice of charging interest at 11.86%. A nice premium on the Reserve Bank rate of 4.5%.
2. Government Hand Outs Bite Back
To help with the GFC, the Government offered an investment tax break, which encouraged small business to invest in capital items including cars. With the significant slow down in many industries the tax saving from the investments were not significant, especially compared to some of the claims by car salesman. Also, most of the capital purchases where financed by loans which now need to be paid back in a slow economy.
3. ATO Audit Activity
ATO is back to normal on the audit activity. We all appreciate the ATO keeping a level playing field by making sure everyone is paying the right amount of tax. The additional burden of complying with an ATO audit is another cost that small business must face. Contact Accumul8 if you would like Tax Audit Insurance.
4. Who's On First
The ATO also has a new proof of identity regime. Privacy of information is absolutely important. However, when does privacy go to far. If you have the pleasure of the ATO calling you, the ATO will need to prove that they are talking to right person, which is a good thing. However, how do we prove that they are from the ATO and not a scammer. The question is "Who proves who is who first?". The original Abbott and Costello comedians would have had a field day with that one.
Small Business Fights Back
The majority of small business are Mum and Dad operations that have no choice but to dig in, get the work done and get back in control of the money. Accumul8 are here to help. From Accumul8 you will receive proven systems to get you on top of your finances. By being proactive and told the truth, not want you want to hear you, will have better knowledge and a plan to get out of the financial black hole that many small business fall into.
Email us today at consult@accumul8.com.au and we can talk the talk.
