Privacy Policy | Contact Us  
logo
spacer spacer spacer spacer spacer spacer spacer
spacer
spacer
spacer
spacer

Liability limited by a scheme approved under Professional Standards Legislation.

spacer
Hot Issues
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
ATO zeroes in on work expenses, crypto investments
Forget the Tim Tams in your WFH claim, say ‘fun police’
Inflation will force a third of businesses to raise prices
State and Federal Disaster support --- June 2022
Year-end tax planning
World GDP Ranking (1960~2025)
100A ruling ‘turns tax avoidance logic on its head’
Be alert for phoenix activity, businesses told
Equifax signs data agreement with ATO
E-invoicing will reduce emissions, says PwC
Largest cities in the world 1500 to 2100
Last chance to claim the loss carry-back
Changes to recovery loan scheme for small and medium enterprises
About the cash flow forecasting template
Federal budget 2022: Winners and Losers
ATO puts 50,000 directors on notice.
FBT Reminder – Odometer Reading
Data matching program: government payments
Budget: Big wins for SMEs
Small businesses show sign of omicron rebound
Federal Budget 2022 - Overview
Federal Budget 2022 and YOU - Part 1
Federal Budget 2022 and YOU - Part 2
Budget at a Glance - Video
Articles archive
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2017
Articles
‘Bank-like heists’ make way for new wave of cyber crime
ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
SMSF trustees told to take action on contributions
Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Does your business import or export goods and services?
Federal Budget - 2017-18 - Budget documents
When does an asset cost less than $20,000? Depreciating assets: composite items
ATO finalises guidance for capped defined income streams
Warning on trap with trust deed updates
2011 Census - what was the make up of your area?
It’s no secret that Australians have some of the largest houses in the world.
Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
FBT Reminder – Odometer Reading
ATO on 'aggressive' debt recovery hunt
More ATO downtime looms ahead of tax time
Tax debt release applications refused
Troublesome tax system overhaul picks up speed
Government to ‘put to bed’ uncertainties with TRIS
Travel expense and transport of bulky tools claim denied
New law sheds light on global tax issues
Report tips housing price spikes to wipe out super savings
Personal insolvency numbers spike across Australia

New statistics from the Australian Financial Security Authority (AFSA) have revealed that business-related personal insolvencies are on the rise across much of the country, with one mid-tier concerned that numbers could continue to rise.



       


 


Yesterday AFSA released regional personal insolvency statistics for the March quarter 2017 in comparison to the December quarter 2016, showing increases in many of the capital cities and some regional states.


RSM’s national head of restructuring and recovery, Peter Marsden, told Accountants Daily that accountants need to ensure their clients are on top of their cash flow and business plan in order to avoid personal insolvency.


“It’s really about understanding what the business does, and then the usual tips and tricks and fundamental things that you need to do,” he said.


“One is manage your cash flow properly and pay great attention to your cash flow because ultimately your test as to whether you're insolvent is - can you pay your debts as and when they fall due.”


Mr Marsden said that the biggest single creditor that pursues people to bankruptcy and liquidation is the ATO for unpaid GST, superannuation, or tax.


“The big trap a lot of business people fall in to is that they don't pay their taxes because the ATO doesn't whinge if you miss one month’s payment, they really don't do very much about it,” he said.


“[Too often businesses] let the tax office slide and eventually you end up doing it for two or three or four months and then the numbers get so big you can't jump over it. So make sure that all those taxes are kept up-to-date. Don’t allow yourself to fall behind.”


The AFSA statistics revealed that the number of debtors who entered a business-related personal insolvency in the Greater Sydney region rose 8.6 per cent from the December 2016 quarter to the March 2017 quarter.


Conversely, the rest of NSW experienced a drop of 10.7 per cent in the number of debtors who entered a business-related personal insolvency.


The number of business-related personal insolvency debtors in the Greater Melbourne region and the rest of Victoria rose 5.7 per cent and 8.3 per cent respectively.


The Greater Brisbane region saw an increase of 13.9 per cent in the number of business-related cases, with the rest of Queensland experiencing a 2.1 per cent drop.


Business-related personal insolvencies increased in the Greater Adelaide region and the rest of South Australia, rising 9.8 per cent and 108.3 per cent respectively.


The Greater Perth region saw no change to the number of business-related personal insolvency cases, while the rest of Western Australia saw an increase of 9.1 per cent.


The number of business-related personal insolvencies rose 84.6 per cent in the ACT, remained unchanged in Tasmania, and fell 18.8 per cent in the Northern Territory.


Looking ahead Mr Marsden said further increases are possible given the current situation in the property industry and the “historically low” interest rates.


“There's a lot of talk about what is going to happen in the property industry and housing in particular and what's going to happen there. Any downward movement in that is going to disaffect a lot of small businesses that use properties they own as security for their loans from the bank,” he said.


“The other problem we've got is there are a lot of businesses in the economy who are holding on but not doing much better than that, so any upward movement in interest rates is probably going to lead to an increase in insolvencies.”




LARA BULLOCK
Friday, 26 May 2017
www.accountantsdaily.com.au




16th-June-2017
spacer
sitemap | site by Acctweb