ATO Emerges as Major Small Business Lender with Over $15 Billion Owed in Tax Repayment Plans
Small businesses across Australia often face the daunting task of tax time, grappling with unexpected tax bills that strain their finances. In fact, the Australian Taxation Office (ATO) has emerged as one of the largest lenders to small businesses based on overdue tax repayment plans. Estimates for the 2023 financial year forecast that over $15 billion will be owed to the ATO in collectible tax debt by over 500,000 small businesses. This shocking statistic highlights the lack of planning tools available to small businesses and the cash flow challenges that push many small businesses to the edge.
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Tax time can be a challenging period for small businesses. Managing finances, accounting, and bookkeeping tasks are often overwhelming, leaving business owners with little time to focus on what matters most—their core operations. Unfortunately, many small business owners are caught off guard by unexpected tax bills, leading to economic strain and significant financial repercussions. As a result, the ATO has become one of the biggest lenders to small businesses in Australia, as many entrepreneurs find themselves on tax repayment plans to manage their tax debt. This situation underscores the need for proactive measures to avoid tax debt and alleviate the burden on small businesses.
Understanding the frustrations and financial burdens small business owners face, Thriday — a next-generation accounting platform — has developed a revolutionary tax predictor to empower businesses and provide accurate tax forecasts, enabling them to plan and minimise unexpected tax bills.
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Michael Nuciforo, CEO of Thriday, explains, "Small business owners are no strangers to the frustrations of financial administration. Balancing the books, keeping track of expenses, and ensuring compliance with tax obligations can be time-consuming and complex. This strain often leaves entrepreneurs under-prepared for tax time and with no comprehension of what their tax position will be."
To help businesses get on the front foot, Thriday has developed its groundbreaking tax predictor. Powered by artificial intelligence, Thriday's tax predictor enables small businesses to plan ahead and minimise the impact of unexpected tax bills. By harnessing advanced algorithms, the tax predictor provides accurate tax estimates, empowering businesses to make informed financial decisions.
Nuciforo added, "With Thriday's tax predictor, small businesses can forecast their tax obligations accurately, allowing them to allocate resources and plan their cash flow effectively. By gaining visibility into potential tax liabilities, businesses can better prepare and avoid the financial strain caused by unexpected tax bills."
Thriday's commitment extends beyond accurate tax estimates. In cases where businesses face tax debt, Thriday stands ready to assist in supporting clients with strategies for paying back their bills to the ATO. Thriday understands that businesses may encounter unforeseen circumstances and provides guidance to help them navigate repayment.
"We recognise the challenges small businesses face during tax time," said Ben Winford, COO at Thriday. "For businesses that still end up with a tax debt, we have many tools built into the product, such as sub-accounts, that allow businesses to set aside funds to stick to their repayment plans."
Thriday's tax predictor is a game-changer for small businesses, helping them confidently navigate tax time. By empowering businesses with accurate tax estimates and proactive planning, Thriday is revolutionising the way small businesses approach their financial obligations.
DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360 AFSL 241167 (Regional Australia Bank). Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you. Team Thrive No 2 Pty Ltd ABN 26 677 263 606 (Thriday Accounting) is a Registered Tax Agent (No.26262416).