Leading non-bank lender Resimac has highlighted to small business the importance of staying on top of taxation obligations following a Federal Government bill allowing the Australian Taxation Office (ATO) to report the tax debts of small business owners to credit reporting agencies.
Resimac’s general manager of third-party distribution, Daniel Carde, said he was concerned that small business owners could potentially suffer longer term implications for what could be a short-term problem.
“Australia’s small business owners are already doing it very tough with economic growth at its slowest rate since the impact of the GFC in 2009. We do not want to see small business owners finding it more difficult to access much needed credit because of a business tax debt they may have incurred many years earlier.
“This segment of the community is not well served by traditional lenders, yet they represent a significant opportunity for brokers. With more complex income and tax obligations that need to be managed, these customers can often become a ‘client for life’ as their finance needs change over time as their businesses grow,” he said.
Mr Carde added that small business owners should be proactive in engaging with the ATO in relation to tax debts. “Non-payment of a taxation obligation can become a serious problem for small business owners if it is not addressed. We also urge brokers to discuss the management of tax debt with their small business clients.
“The government has introduced this bill to strengthen the incentive for businesses to pay their debts, and our specialist product range is ideally suited to assist those small business owners who may need to borrow to do this.
“The best advice we can give is to be open and transparent around the circumstances surrounding the debt and to get on top of it early. However, if you find a borrower has left it too late and incurred a bureau listing, our specialist product range can also assist in these circumstances,” Mr Carde said.
