The AFA has received some advice from the Australian Taxation Office (ATO) about sharing tips to help your business meet its tax obligations to avoid paying unnecessary interest (currently 11.38%) and penalties.
- Set up a separate bank account for pay-as-you-go (PAYG) withholding, employee super, and GST.
- Avoid the temptation to use PAYG withholding, employee super or GST as cash flow.
- Boost your cash flow knowledge by taking advantage of these free online tools: Essentials to strengthen your small business and business.gov.au/finance/cash-flow
Your tax professional can help you work out the best strategies or assist you if you’re experiencing financial difficulties, or if you need additional help, contact the ATO for support.