Latest news with #SusanFranks
News.com.au
25-06-2025
- Business
- News.com.au
Urgent tax time warning for Australian small businesses as law aimed at recouping $45b comes in to effect
Millions of Aussie small businesses are being warned to pay their tax bills on time or they will be slugged with a fee, compounding daily. In changes to taxation laws coming into effect on July 1, interest charged by the Australian Taxation Office (ATO), which is set at 11.17 per cent per annum but the rate is compounded daily, will no longer be tax deductible. This means businesses who previously didn't have to worry about the debt due to it being tax deductible in the next financial year, would now have to pay their tax bill plus any interest owed. CA ANZ tax expert Susan Franks warns the approximately 2.6m small businesses in Australia this change will substantially increase the real cost of falling behind on tax obligations, particularly for small businesses already operating on tight margins. 'Small businesses currently hold the majority of the ATO's outstanding tax debt, and this change will make that debt even more expensive,' said Ms Franks. 'Previously, small businesses may not have been concerned about accumulating interest on tax debt, as it was deductible at tax time. 'But from 1 July 2025, small businesses could find themselves in a difficult situation and if not managed carefully, interest owed to the ATO could quickly exceed the amount of tax they were originally meant to pay.' The change comes into effect as the tax office tries to recoup the $45bn owed to them by small businesses. ATO assistant commissioner Anita Challen reminded taxpayers to pay in full and on time to avoid general interest charges accruing on overdue debts. 'These changes will mean it will cost more to carry a tax debt and, while taxpayers won't feel this change until next tax time, ATO general interest charge is currently charged at 11.17 per cent and compounds daily making it so important to get on top of your tax obligations,' Ms Challen said. 'If you have a tax debt you've been putting off paying – now is the time to pay.' The changes to the tax law comes as separate data sent from CreditorWatch shows more than 30,000 businesses across Australia owe the tax office at least $100,000. Since April 2022, the ATO has disclosed business tax debts to credit reporting bureaus, such as CreditorWatch, if they owe more than $100,000 and the business has not responded to outreach in two months. CreditorWatch says this is not a full list of businesses that owe more than $100,000 but worryingly 15,635 individuals or sole traders currently owe the tax office at least six figures. The ATO urges any businesses that are unable to pay their tax liabilities to get in contact with the taxation office. 'If you cannot pay on time and in full, you should also discuss your financial position with your accountant or finance provider to understand if there are alternative methods of funding payment of tax debts that might have a lower interest rate,' Ms Challen said. ' If you are considering obtaining third party financing to pay your tax debt, you should discuss the tax implications with your registered tax agent or adviser.'
Yahoo
25-06-2025
- Business
- Yahoo
Major tax change impacting millions
Millions of Aussie small businesses are being warned to pay their tax bills on time or they will be slugged with a fee, compounding daily. In changes to taxation laws coming into effect on July 1, interest charged by the Australian Taxation Office (ATO), which is set at 11.17 per cent compounded daily, will no longer be tax deductible. This means businesses who previously didn't have to worry about the debt due to it being tax deductible in the next financial year, would now have to pay their tax bill plus any interest owed. CA ANZ tax expert Susan Franks warns the approximately 2.6m small businesses in Australia this change will substantially increase the real cost of falling behind on tax obligations, particularly for small businesses already operating on tight margins. 'Small businesses currently hold the majority of the ATO's outstanding tax debt, and this change will make that debt even more expensive,' said Ms Franks. 'Previously, small businesses may not have been concerned about accumulating interest on tax debt, as it was deductible at tax time. 'But from 1 July 2025, small businesses could find themselves in a difficult situation and if not managed carefully, interest owed to the ATO could quickly exceed the amount of tax they were originally meant to pay.' The change comes into effect as the tax office tries to recoup the $45bn owed to them by small businesses. ATO assistant commissioner Anita Challen reminded taxpayers to pay in full and on time to avoid general interest charges accruing on overdue debts. 'These changes will mean it will cost more to carry a tax debt and, while taxpayers won't feel this change until next tax time, ATO general interest charge is currently charged at 11.17 per cent and compounds daily making it so important to get on top of your tax obligations,' Ms Challen said. 'If you have a tax debt you've been putting off paying – now is the time to pay.' The changes to the tax law comes as separate data sent from CreditorWatch shows more than 30,000 businesses across Australia owe the tax office at least $100,000. Since April 2022, the ATO has disclosed business tax debts to credit reporting bureaus, such as CreditorWatch, if they owe more than $100,000 and the business has not responded to outreach in two months. CreditorWatch says this is not a full list of businesses that owe more than $100,000 but worryingly 15,635 individuals or sole traders currently owe the tax office at least six figures. The ATO urges any businesses that are unable to pay their tax liabilities to get in contact with the taxation office. 'If you cannot pay on time and in full, you should also discuss your financial position with your accountant or finance provider to understand if there are alternative methods of funding payment of tax debts that might have a lower interest rate,' Ms Challen said. ' If you are considering obtaining third party financing to pay your tax debt, you should discuss the tax implications with your registered tax agent or adviser.' Error in retrieving data Sign in to access your portfolio Error in retrieving data
Perth Now
25-06-2025
- Business
- Perth Now
Major tax change impacting millions
Millions of Aussie small businesses are being warned to pay their tax bills on time or they will be slugged with a fee, compounding daily. In changes to taxation laws coming into effect on July 1, interest charged by the Australian Taxation Office (ATO), which is set at 11.17 per cent compounded daily, will no longer be tax deductible. This means businesses who previously didn't have to worry about the debt due to it being tax deductible in the next financial year, would now have to pay their tax bill plus any interest owed. A change in tax policy could see small businesses needing to pay their tax liabilities sooner. NewsWire / Emma Brasier Credit: News Corp Australia CA ANZ tax expert Susan Franks warns the approximately 2.6m small businesses in Australia this change will substantially increase the real cost of falling behind on tax obligations, particularly for small businesses already operating on tight margins. 'Small businesses currently hold the majority of the ATO's outstanding tax debt, and this change will make that debt even more expensive,' said Ms Franks. 'Previously, small businesses may not have been concerned about accumulating interest on tax debt, as it was deductible at tax time. 'But from 1 July 2025, small businesses could find themselves in a difficult situation and if not managed carefully, interest owed to the ATO could quickly exceed the amount of tax they were originally meant to pay.' The change comes into effect as the tax office tries to recoup the $45bn owed to them by small businesses. It comes as the tax office is looking get back more than $45bn in tax revenue. NewsWire / Nicholas Eagar Credit: NewsWire ATO assistant commissioner Anita Challen reminded taxpayers to pay in full and on time to avoid general interest charges accruing on overdue debts. 'These changes will mean it will cost more to carry a tax debt and, while taxpayers won't feel this change until next tax time, ATO general interest charge is currently charged at 11.17 per cent and compounds daily making it so important to get on top of your tax obligations,' Ms Challen said. 'If you have a tax debt you've been putting off paying – now is the time to pay.' The changes to the tax law comes as separate data sent from CreditorWatch shows more than 30,000 businesses across Australia owe the tax office at least $100,000. Since April 2022, the ATO has disclosed business tax debts to credit reporting bureaus, such as CreditorWatch, if they owe more than $100,000 and the business has not responded to outreach in two months. The number of businesses CreditorWatch says owes the tax office at least $100,000. Supplied Credit: Supplied CreditorWatch says this is not a full list of businesses that owe more than $100,000 but worryingly 15,635 individuals or sole traders currently owe the tax office at least six figures. The ATO urges any businesses that are unable to pay their tax liabilities to get in contact with the taxation office. 'If you cannot pay on time and in full, you should also discuss your financial position with your accountant or finance provider to understand if there are alternative methods of funding payment of tax debts that might have a lower interest rate,' Ms Challen said. ' If you are considering obtaining third party financing to pay your tax debt, you should discuss the tax implications with your registered tax agent or adviser.'
7NEWS
24-06-2025
- Business
- 7NEWS
Tax returns simplified: Key dates, calculators and what you need to know
Tax time is about to inspire millions of Australians to dig through their drawers and emails for vital receipts and documents needed to lodge their 2024-2025 returns. Given cost-of-living pressures are weighing heavily on household finances, many taxpayers will be looking to maximise the refund they are entitled to, or minimise the bill they owe. But there are restrictions on what you can and cannot claim, and experts have issued a warning about the need to play within the Australian Taxation Office's (ATO) rules. How can I prepare for tax time? Simply, your tax return is a summary of the income you have earned, how much tax you have already paid, and the expenses you claim each financial year (July 1 to June 30). It is also used to determine if you have paid enough tax to the ATO, the government's revenue collection agency. Australians can prepare for tax season by gathering your tax file number and information on bank account interest, and ensuring you have the correct bank account details where refunds are deposited. Pull together investment and private health cover records, as well as receipts for work-related expenses and tax-deductible donations you plan to claim. Money Smart, an initiative by the Australian Government, also provides an income tax calculator for those wanting an idea of what they can expect to either be owed or need to pay. For those working multiple jobs, it is important to remember you will need to declare all of your income sources. 'The ATO has access to sophisticated data tracking through its data matching programs,' Chartered Accountants ANZ's tax lead, Susan Franks, told 'These programs enable the ATO to match third party data with its own data to ensure that people are complying with their tax obligations as well as detect fraud. 'The ATO currently has 25 data matching programs which include information from investment property loans, motor vehicle registries and insurance companies. 'It can, and does, verify what taxpayers claim against these data sources.' When can I lodge my return? Australians can file their tax return from July 1 but experts say you should not get caught up in that date. That is because you want to make sure your document is complete and accurate before you hit the lodge button, to avoid a follow-up call from the ATO. CPA Australia tax lead Jenny Wong said it is not uncommon for early lodgers to have to amend their returns later, so holding fire can save you in the long run. 'Cost-of-living pressures could mean some people are eager to lodge their tax return as quickly as possible to access a refund, but it's important to be patient, gather your evidence and claim everything you are entitled to,' Wong said. 'Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot.' The ATO says taxpayers lodging online through government-run service myTax should wait until later in July because by then 'we will have pre-filled information into your return for you'. 'This includes information from employers, banks, government agencies and health funds,' ATO Assistant Commissioner Rob Thomson told 'Then, all you need to do is check that your details are correct, and add anything that's missing, like extra income from your side hustles, or investments. 'You can use the ATO app to check pre-fill information we receive from third parties and work out if you're ready to lodge.' How can I lodge a tax return? There is more than one way to prepare and lodge your return, including a paper tax return by mail, online through myTax or through a tax agent if you have more complex affairs, or simply prefer this method. More than 14 million individual tax returns were lodged in 2024. Of those, 5.9 million were lodged by self-preparers and 8.1 million were filed by tax agents. The average claim made by taxpayers is about $3000. Why should I lodge through myTax? The ATO has spruiked the benefits of this method, saying information from your employers, banks, government agencies, health funds and third parties are pre-filled by late July — meaning you just need to double check those details are correct. On top of that, it says myTax is conveniently available around the clock, and claims 'you'll get your refund faster, generally within two weeks'. For those choosing to lodge online, you can start by creating a myGov account and linking it to the ATO. Many will have already done this in previous years. I want guidance from a tax agent The majority of Australians still call on the services of a professional to lodge their return. Experts say that anyone would benefit from the knowledge of a tax agent, especially those with more complex financial and earning activities — think self-employed taxpayers or Australians with investment properties. 'Paying a professional tax agent to do your tax return is itself a tax-deductible expense,' Wong said. 'Engaging an expert to ensure you make the most accurate and comprehensive claims possible could increase your chances of securing a more substantial refund.' They can also steer you away from things you cannot claim, including the cost of getting to and from work, and regular clothing worn at work. New research from Xero, a panel of accounting and bookkeeping partners, shows 54 per cent of taxpayers worry about making mistakes on their return, and 51 per cent are confused about deduction rules, especially for car, travel, and working-from-home expenses.
West Australian
07-05-2025
- Business
- West Australian
ATO and tax experts reveal most ‘outrageous' things Aussies have tried to claim back
Yachts, island holidays, gaming consoles and even swimwear for a truck driver looking to cool off have featured among a collection of wild expense claims Australians have tried to slip past the tax office. Ahead of the 2025 tax period, Australia's revenue collection agency has signalled what it will be cracking down on this year while warning exaggerated deduction attempts 'would not be tolerated'. Among the 'most outrageous' work-related deduction attempts the Australian Taxation Office (ATO) received last year was a truck driver who tried to claim swimwear because they had stopped in a hot place and needed a swim, and an unnamed fashion industry manager who wanted to be reimbursed more than $10,000 they spent on luxury clothing bought to attend dinners and other functions. A third example shared by the ATO was of a mechanic who tried to claim gaming consoles, a TV, an air fryer and vacuum cleaners as work-related expenses. All claims were denied. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense it needs to meet strict criteria,' ATO Assistant Commissioner Rob Thomson said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible. 'We know in many instances mistakes relating to work-related expenses could be avoided with a little time and effort.' The 'revealing' length some Australians are willing to stretch the truth if they can score a tax break was also identified when Chartered Accountants ANZ (CA ANZ) surveyed 180 tax experts. One taxpayer tried to claim a luxury yacht as a work expense because 'they might have some business to do' on some islands, while another wanted to be paid back for monthly salon trims because their 'hair grows during business hours'. 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership as the individual needed to be strong and fit to renovate their rental property,' CA ANZ tax lead Susan Franks said. 'Another related to a Pilates reformer machine purchased to help an office worker who had a sore back. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business.' Other taxpayers tried to claim vet and food bills for their pets, a pool, school fees and an engagement ring. Franks said the attempts were cheeky but discouraged people from making fraudulent claims 'because the ATO will not be laughing'. The tax office said work-related expenses, working from home deductions and side hustles would be in the microscope this year, claiming these are areas that produce 'frequent errors'. More than 10 million people claimed work-related deductions in 2024, and many lodged expenses relating to working from home. 'Work-related expenses must have a close connection to your income earning activities and you should be prepared to back it up with records like a receipt or invoice,' Thomson said. 'If your deductions don't pass the 'pub test', it's highly unlikely your claim would meet the ATO's strict criteria. The advice for taxpayers is to check the ATO website and to consider using its app where expense records can be stored and later shared with your tax agent or uploaded to myTax when lodging your return.
