In the past month we have been travelling through Southeast Queensland, visiting small businesses in areas such as Logan, Ipswich, Arana Hills, Ashgrove and more. As we prepare to head to regional Queensland to welcome a new council to the Small Business Friendly Program, we continue to dedicate our time to meeting with small business owners face to face, listening to their opportunities and challenges, and discussing the services and support available to them.
July marks the new financial year for small business across the country, and with it comes the inevitable tax time. We understand this period is challenging, and it is rare to find someone who speaks fondly of their experiences with the tax process! We hear the collective sigh from small business owners and acknowledge their hard work and resilience during this time.
Recent reports from the ABC have highlighted stories about rising tax and superannuation debts, as well as significant penalties being levied against company directors. The commercial credit reporting bureau, Creditor Watch, paints a sombre picture for Australian businesses, with invoice values plummeting by nearly half compared to last year, and a concerning 8.8% uptick in business failures over the past twelve months. Particularly hard hit are the food and beverage and construction sectors, where tax debts exceed $100,000 with electricity and gas a close second.
The Australian Taxation Office (ATO) has openly declared it is taking ‘firmer debt collection action’. The belief is this will prevent businesses that don’t meet their fiscal responsibilities from gaining a competitive advantage. In my experience, small business owners are not looking to exploit tax debt for competition’s sake. The small business owners I’ve met are hardworking individuals who juggle numerous responsibilities and bear the weight of supporting both their employees and their own families. I encourage the ATO to engage more with small businesses to improve their awareness of the challenges small business owners are facing.
With the increasing focus on tax-related debts, now more than ever it is crucial for small business owners to have a solid understanding of their financial health, enhance their knowledge of tax matters, and seek professional guidance if you need support or are struggling with these issues. Our work with the two free tax clinics in Queensland shows that confronting these challenges proactively is an important step and that understanding your true financial position can reduce your risk of insolvency by up to 80%!
For more information on tax as a small business owner, I encourage you to explore the Tax Time Toolkits available on the ATO website and watch their webinars on frequently asked questions. If you want to speak to someone about your business’ finances or the pressures associated with business, please connect with the free Small Business Support Network for confidential financial counselling, one-on-one support, and information to look after your mental health and wellbeing as you run your business.
Remember, you are not alone—we are here to help!
Upcoming activities:
8-9 August – Townsville Chamber of Commerce, Rising Regions Conference and Business Awards
12 August – Banana Shire Council and Callide Dawson Chamber of Commerce dinner event, Biloela
13 August – Gladstone Regional Council, sign up to the Small Business Friendly Program
28 August – Women in Public Sector Leadership Summit (speaker), Voco Brisbane City Centre
Connect with us
If you are new to our newsletter or want to learn more about our services, resources, initiatives, and projects, visit the QSBC website. If you need more information, call us on 1300 312 344 or submit an enquiry.
Main photo: Dominique Lamb, Queensland Small Business Commissioner.
Dominique Lamb
Queensland Small Business Commissioner
For more details, read the QSBC newsletter July 2024