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AVA Advisory Breaking Scoop: Debt Crisis Threatens Australian Hotel Industry
SYDNEY— The Australian hotel industry is facing numerous challenges due to the worsening market conditions. Among these, debt has become their biggest burden, according to a recent report by CoStar. Debt levels in the Australian hotel industry have increased by 20% in the past year, due to a number of factors, including the high cost of land and construction, as well as the rising cost of debt. High levels of debt cause difficulties for hotel owners to invest in their properties and make necessary repairs and renovations. Furthermore, it makes them more vulnerable to interest rate hikes and other economic shocks. Despite the challenges, experts believe that the worst is over for the Australian hotel sector. The industry is expected to benefit from the return of international tourism and the continued growth of the domestic market. However, hotel owners will need to carefully manage their debt levels and other financial risks in order to weather the storm. If you’re struggling with debt or any financial difficulty, don’t hesitate to contact AVA Advisory for help. With our expert advisors, we can guide you in developing an effective debt management strategy and negotiate with your lenders. Call us today at 1300 181 220 to book a consultation.
AVA Advisory Breaking Scoop: ATO Cracks Down on Businesses with Long-Term Tax Debts
Published last September 18, 2023. The Australian Tax Office (ATO) is leaving no room for leniency when it comes to businesses with long-term tax debts. Tighter payment plans, an end to remissions, and a warning to take businesses to court. These are some of the reminders of Deputy Commissioner of Taxation, Viverk Chaudhary mentioned during the Lodge and Pay Speech at the Tax Institute 2023 Tax Summit last September 7. Over the past 4 years, there has been an 89% increase of collectable debt from $26.5 billion in June 2019, to $50.2 billion by June 2023. This resulted in the ATO taking a tougher stance on businesses that owe long-term debts. They are using $82 million to crack down on thousands of businesses with debts of $100,000 or older than two years. This includes the small businesses who owe over $33 billion of the $45 billion in collectable debt. “Our expectation is, and should continue to be, that all clients will pay on time and not wait for us to chase them or expect concessions from the ATO. The ATO has an important role to create a level playing field for those businesses that always pay on time. We are unapologetic about this role, and it must be done,” Chaudhary emphasized. He also added that the remissions on interest charges and penalties would become the exception rather than the rule, and that there will be exits. The ATO’s crackdown on long-term tax debts is a clear signal to businesses that they need to take their tax obligations seriously. ATO’s commitment to creating a level playing field for businesses is only fair and right. Businesses that always pay their taxes on time should not be disadvantaged by those that do not. With the ATO implementing more stringent measures, now is the time to proactively address your financial obligations. Also, if you’re one of the many business owners asking this: Does bankruptcy clear tax debt in Australia? The answer is NO. The Australian Taxation Office (ATO) is one of the few creditors that are not bound by a bankruptcy discharge order, so even if you are discharged from bankruptcy, you will still be liable for any unpaid tax debts. AVA Advisory specializes in providing tailored debt management solutions that align with the evolving regulatory landscape. So, contact us today at 1300 181 220 to develop a comprehensive plan to tackle your debt head-on.
