Consider this scenario: The owners of a family business that is run through a company are set to retire. The business is packaged up for sale and sold. The sale proceeds are paid to the owners giving rise to large shareholder loan accounts and the company lies dormant. The shareholders wish to end the company’s […]
Each year, it seems the stigma associated with bankruptcy continues to fade just a little…but should it? While every individual’s situation is different and needs to be considered on its own merits, there are upsides and downsides to filing for bankruptcy that must be understood before choosing the insolvency path. Allowances in bankruptcy When an individual […]
Federal government safety net for employees When an employee loses their job through the liquidation or bankruptcy of their employer, they will have recourse to a federal government safety net called the Fair Entitlements Guarantee (FEG) for protection of certain unpaid employee entitlements. The entitlements that may be claimed by an eligible employee are: unpaid […]
Top 5 warning signs of business failure When financial pressure is mounting, a company director has a lot of noise to deal with. In this situation, a small business owner can become blinkered and miss the obvious warning signs in front of them. The ability to identify, and act on warning signs can help a business […]
The ATO’s stronger debt collection measures The Australian Tax Office (ATO) has implemented stronger debt collection measures to counter the recent increase in tax debt of small business owners. The Sydney Morning Herald recently reported an increase in Australian tax debt to almost $20 billion, with small business taxpayers accounting for 60 per cent of […]
Five tips to secure finance for your business In today’s tough economic climate, where cash flow is critical, small business owners may consider applying for new finance or refinancing their existing facilities. If successful, the process can result in access to extra funds, lower interest rates and reduced costs – all of which can […]
Six steps to avoid Christmas insolvency Christmas can be a peak time for some small business owners, such as retailers, and a challenging time for others, such as manufacturers and service providers. It is no coincidence that the number of insolvencies for certain industries rises in February and March each year after paying wages, finance […]
Small business tax debts to be disclosed by ATO In its mid-year economic and fiscal outlook, the Australian Government announced that it will allow the Australian Taxation Office (ATO) to disclose tax debt information of businesses that have ‘not effectively engaged with the ATO’ to credit reporting agencies from 1 July 2017. Initially, this measure […]