Even though the agency understands the challenges faced by small businesses, they are looking to collect about $34.1 billion in accumulated collectable debt. In many ways, they can’t afford to continue to broadly defer payments, but they are willing to approach each tax situation on an individual basis if you reach out to them. However, if you don’t pay on time, the ATO is taking the following actions:
The ATO is not currently relying on external collection agencies to collect these debts, but they reserve the right to do so in the future or on a case-by-case basis.
No matter how dire your financial situation, it’s not a good idea to avoid your obligations. The ATO will take stronger actions if you do not communicate with them about your situation, which may include:
The first step is reaching out to the ATO to discuss your financial circumstances and develop a plan for paying your debts. When you know exactly what you need to pay each month, the next step is ensuring you have the cash flow to cover those obligations.
Imagine being days away from a looming ATO deadline. You might have thousands of dollars sitting in unpaid invoices, but you’re not sure if your clients will pay those tomorrow—or if they’ll wait their allotted 30, 60, or 90 days to pay the invoice. If they pay up, you can fulfil that ATO payment; if not, you’re forced into a late payment despite having already done the business required to cover it.
This is where debt factoring with Key Factors comes in. You can bridge the gap of slow payments and bring that money into your business now, when you need it, rather than waiting for clients to pay their invoices—clients who may have their own financial challenges that are causing them to delay. This is how it works:
Debtor Factoring gives you access to money you’ve already earned. Instead of waiting 30, 60, or 90 days for your clients to pay their invoices, you can use debt factoring to bring that cash into your business within hours. Companies throughout Australia rely on debt factoring in the best and worst of times, since that money can be used to attract new clients, negotiate with suppliers, invest in new technology, develop a new product or service, pay employee wages on time, and, of course, stay on top of ATO obligations.
Key Factors is the leading independently owned debt factoring company in Australia. For more than 32 years, we’ve been helping businesses in a variety of industries, including IT, recruitment and labour hire, manufacturing and wholesale, transport and logistics, and earthmoving and mining improve their cash flow with debt factoring. Our years of experience and attentive customer care set us apart in this industry:
For decades, businesses throughout Australia with a monthly turnover of $50,000 or more have trusted Key Factors for debt factoring. We are proud to offer transparent fees and personalised customer service and debt factoring solutions to meet the unique needs of your business. With offices in Perth, Sydney, Brisbane, and Melbourne, we have local cash flow experts around the country ready to work with you and your business. Contact us today on 1300 884 100 to learn more about debt factoring and how you can use it to stay on top of ATO obligations.