What happens if an individual has difficulty paying a tax debt?

There are very serious consequences to not paying your taxation debts and returning your income tax return on time, which is why it is always best to use income tax professionals and tax accountants based in and around Brisbane, Cairns, Ipswich, Bundaberg, Townsville, the Gold Coast and Cairns. They will be able to advise you on the process of tax debt repayment and as tax agents they can support and help you through the process of liaising with the Australian Tax Office or ATO. There are several procedures that you can go through if you do have difficulty paying your tax debt and these are as follows:

Communicate with the ATO 
Whatever you do, don’t delay in getting in touch with the Tax Office, your tax agent can do this on your behalf but you need to make sure that you inform them of your circumstances as soon as possible.

Self-help service
If the tax debt that you have a problem paying is less than $25,000 then you need to telephone the ATO automated self-help service. You can use this service to apply to make a late payment, or make an application to pay off your debt in instalments. If you have previously gone through your finances with an income tax accountant or professional, you will be able to work out how much that you can commit to paying back, including any interest rate on the repayments. This will make the self-help service so much easier if you are forearmed with this information. There is an online calculator as well that you can use to work out how quickly it will take you to pay off a tax debt, and this is important as it takes into account the interest that will be charged.

Prepare records of your financial outgoings and income
This is where your tax accountant can be of help, as you will need to ensure that all your outgoings and financial commitments are evidenced and recorded. This includes any financial responsibilities for dependants, your expenditure and loans. Include any loans or repayments such as the compulsory Higher Education Loan Program (HELP) or the Student Financial Supplement repayments (SFSS). If you are requesting delaying your payment or claiming hardship difficulties then the ATO may need to see your evidence. Getting your income tax accountants or agents to prepare this in advance will prove useful and also focuses your mind on what monies you have to manage in your budget.

Telephone and speak with a member of the ATO support staff 
There are people at the ATO who are specially trained to deal with circumstances such as yours, and their aim is not to cause you further distress or financial hardship. They are there to help resolve your tax debts and to help you wherever possible, this means considering each case on its own individual merits. If paying off your tax debt will mean going without food or rent for your home, then they will discuss whether you are eligible to apply for a tax debt release.

Otherwise you can work with the ATO staff to negotiate additional time to pay your debt, and then you need to sit down with your income tax professional and work out how to pay back your tax, whilst ensuring you don’t get into the same position in the new income tax year.

Following these simple steps can be the difference between amassing large tax debts and suffering the consequences of not paying, or taking a sensible and planned approach to dealing with tax repayments, giving you and your dependants, greater peace of mind.

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If you live in Brisbane, Cairns, Townsville, Ipswich, Bundaberg or the Gold Coast, a professionally trained tax agent will be able to assist you at ITP Qld where no upfront fee is necessary.

What happens if a business is unable to pay its tax debt?

Running a business is extremely time-consuming but organising your tax payments on time should be one of your top priorities. However, if you have been let down by your customers, chasing bad debts and payments plus juggling a heavy work load, you can experience financial difficulties that means you are unable to pay off your tax debt. If this is the case there are a few simple steps that you must undertake in order to avoid penalty charges and in certain circumstances, severe punishment that could involve you being taken to court and face a prison sentence.

First of all contact the Australian Tax Office (ATO) 
If you know that you are not going to be able to pay off your tax debt by the correct date, then contact the ATO. You or your income tax agents must inform the ATO so that they can work with you to make suitable arrangements to pay off the debt. They can discuss the various options with you but it might be possible for you to pay off the debt in instalments.

Negotiation for payment by instalments
This is not a new situation for the ATO as many businesses have problems from time to time with cash flow, so speak with your tax accountant as they will be able to negotiate this for you. Getting an experienced income tax professional, of which there are several in the Brisbane and Cairns area, is the best way forward as they will be used to negotiating with the ATO. They can help you prepare for the questions that the ATO will ask as to why you cannot pay the money all in one go.

Ensure all outstanding tax statements are submitted to the ATO
You and your tax accountant will need to ensure that any outstanding income tax returns, activity statements and other documents relating to your business tax, are submitted to the Tax Office. If you do need some help to catch up on your business taxes, then speak to your accountant.

Notification of the payment arrangement 
If your tax accountant, or tax agent, has been able to negotiate payment in instalments, then the next step is that the ATO will send you notice of this in writing. They will also send out a set of payment slips one for each part payment and you can arrange to pay these via direct debit or credit for example.

Pay each instalment on time and in full 
Your tax accountant will emphasise how important it is to make sure that you make each instalment payment with the due date and the correct amount. If you don’t then the ATO could demand all the payment in full. Your accountant will also help you to prepare an effective tax payment plan for the next income tax year and give you advice on how to manage your tax payments.

Interest payments
You also need to be aware that if you don’t pay your business tax on time, then a general interest charge will be added automatically to the amount outstanding. Again this is something that your income tax professional will highlight to you as well as the penalties that you will face should you fail to pay altogether, or miss an important tax deadline.

Remember if in doubt speak with an experienced income tax accountant in your area, and you will be sure to get all the help and advice to avoid falling into a tax debt situation.

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At ITP Qld, clients can be assured they can speak to a professionally trained tax consultant about all their personal tax matters all year long so your business will be on top of its finances, without charge.

Steps to take when buying a new car

Buying a new car can be a very exciting time for most people, and many look forward to the moment they will be able to slide into the driver's seat of their new vehicle and cruise around enjoying that wonderful 'new car' smell and the smoothness of the drive. However, it can also be a very daunting prospect, as it is a big financial investment for most people. On top of this you have the worry over whether you have chosen the right car for your needs.

When you are buying a new car, it is important to take a number of things into consideration to help ensure you make the right choices. You can help to simplify the process and take most of the stress out of purchasing your car if you do a little forward planning, so it is important to go through a number of important steps when you are purchasing a new vehicle.

Tips to help with the purchasing process

By planning your car purchase properly, you will find that buying a new car that is suited to your needs and your budget can be far easier. Some of the steps you need to go through when buying a new car include:

• Work out how you will fund the purchase: 
You first need to work out how you plan to fund your purchase. You may have money in savings that you plan to use. Alternatively you can look at finance such as car loans, a 457 visa loan, or commercial finance depending on your circumstances.

• How much you can afford to spend/borrow: 
You need to look at the amount you are able to afford to spend or borrow in order to purchase your vehicle. If you are paying for it from your own money you need to work out how much of your savings you can put towards a new car. If you are taking out car finance of some sort you should look into how much you can afford to borrow and what sorts of repayments you can afford to make each month.

• Work out what type of vehicle you need: 
You need to determine what type of vehicle you need based on your circumstances. For instance, if you have a young family you may want to go for a larger family car whereas if you are on your own or just you and a partner you could go for a smaller, sportier car if you wanted to. Make sure you get the size of the vehicle right based on your needs as well as ensuring you look for vehicles that have the features you need.

• Decide where you will be buying your car from: 
Once you have sorted out the finance and worked out the type of vehicle you need, you then need to decide where you will be purchasing from. If you are taking car finance from a dealership you will obviously purchase from that dealership. However, if you are taking other forms of finance such as a bank loan you will need to decide on a reputable place from which to purchase your vehicle.

Taking all of these factors into consideration will make it easier to find a vehicle that is both suitable and affordable for your needs.

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Finance 48 in Perth has over 50 years of experience in the finance and automotive industries, and are accredited with a number of national financial institutions to be able to assist their clients to select the most optimal finance product at the most competitive rates.

What are the criteria of eligibility for a 457 skilled worker visa

The 457 skilled worker visa is a permit that was introduced primarily to address skill shortages, allowing Australian employers to bring in skilled workers from other countries, in circumstances where they cannot find a suitably qualified and experienced Australian national. The visa is valid for four years but the applicant has to be sponsored by an approved business and there are obligations on the part of the sponsor, as well as eligibility criteria for the applicant. If successful, then the holder of the 457 visa can bring in any dependant who are also eligible and they can also study and work in the country.

The obligations from the employer starts with becoming a sponsor either by becoming what is known as an approved standard business sponsor or through a labour agreement. The standard business sponsor stage involves setting out the details of the company applying for this form of sponsorship, getting testaments and records showing strong commitment to employing and training Australians and a proven track record as an Australian based business.

If the company is looking to sponsor overseas skilled workers in the meat or on-hire industries, or if they have special needs and requirements meaning they cannot sponsor workers using the standard business sponsorship route, they will have to enter into a labour agreement with the appropriate Australian government department.

To apply for a 457 visa, you have to have been nominated by an employer who has advised application for the visa and is offering work in Australia under either the standard business sponsorship or labour agreement. Other criteria for application is when the employer has nominated you for work in the country due to a transfer within the organisation, that means moving and working in Australia. Finally if you are a part of the family unit of the 457 visa applicant, who is eligible and meets the visa requirements, then you can also apply for the visa.

457 applicants also have to have a reasonable understanding of the English language; speaking, reading and writing, although there are a few exemptions. Applicants will be required to pass an English test unless they hold a UK, USA, Canadian, New Zealand or Irish passport. Applicants also have to demonstrate they have arranged adequate health cover for their time of stay, and pass all requirements of both health checks and background character checks. Sometimes they may be required to undertake an assessment of their vocational skills as well.

Once the visa has been successfully applied for then there are a few areas to note when living and working in Australia. Due to the temporary nature of the 457 visa, usually four years, when organising housing or transport, not every finance company will offer loans for housing, cars and so on, nor can property be bought without getting approval from the Foreign Investment Review Board. Commercial finance is difficult to get when you are not an Australian citizen or you do not hold permanent residency, so it is best for 457 visa holders to check with anyone of the professional finance operatives in Perth, if looking to apply for a loan as they can give the best advice and help with money matters. They should also be able to signpost you to companies who do offer car finance or loans to 457 skilled workers and is one less thing to have to worry about. Finally, it is worth keeping an eye on the Australian government website as this publishes up-to-date eligibility criteria, along with the current list of approved industries and employment roles as this can change depending on the economic circumstances of the country and the fluctuations in the labour market.

Furthermore, to discover more about visa loans and how Finance 48 can help, click here for more information.