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Sadly, 33.6% of private businesses with outstanding tax debt of $100,000 or more became insolvent or voluntarily closed their doors in 2024. Many of these were small to medium-sized enterprises (SMEs). The electricity, gas, water, and waste services sector had the highest closure rate, with 40% of businesses that defaulted on their tax debts collapsing. Other industries experiencing high failure rates include: Food and Beverage Services (39.7%) Information, Media and Telecommunications (37.5%) Retail Trade (36.0%) Manufacturing (34.3%) This highlights the importance of ensuring your tax obligations are met. Should your business experience difficulties in paying its tax bill, avoiding the situation will only make it worse. Rather, inform the ATO, who will assess your situation and implement a reasonable payment plan.
#accountant #tax #business |