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Peak industry associations have banded together to help struggling small businesses repay debt on time with the creation of a support-based fact sheet.
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SMEs don’t need to ‘tough it out on their own’, says joint bodies
05 September 2024
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Australian professional bodies have collaborated on a support-based fact sheet aimed to help small businesses repay debt in a timely manner despite challenges in the current economic climate.
The fact sheet has been collaborated on by the Australian Banking Association (ABA), CA ANZ, CPA Australia, and the ATO with the motivation to uplift Australian SMEs.
According to the bodies, the fact sheet builds on a campaign from the ABA that reminds customers facing financial difficulty that they don’t need to ‘tough it out on their own.’
ABA CEO Anna Bligh said small-business owners should reach out to relative associations to help with finances or advice if needed.
“If you’re feeling stress about your finances or existing debts, seek help from your bank, accountant or a financial counsellor right away,” she said.
“For any debts you have with the ATO, get in touch with them early on so they can work with you on managing the debt.”
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Bligh said the fact sheet was made with the joint understanding that customers, in particular small-business owners, are feeling the impact of increased cost-of-living pressures.
“Our small businesses are incredibly resilient but banks want customers to know they are not alone if they feel like they are struggling to make repayments,” Bligh said.
“Banks have specialised teams ready to help and the sooner you get in touch the sooner your bank can review your circumstances.”
ATO Assistant Commissioner Anita Challen said the ATO is also a strong advocate for businesses seeking help if they need it.
“We want to work with businesses to help them get back on track with paying their tax debts,” she said.
“We encourage small business owners to reach out to the ATO or a trusted adviser early to identify options that may help their business remain viable.”
Challen said along with the fact sheet, there are a range of support options available to small businesses that need help.
CA ANZ CEO Ainslie van Onselen said SME owners must work with their accountants as soon as they recognise the signs or feel the impacts of financial hardship.
“Chartered accountants have the expertise to help your small business find the best path forward from looking at your business structure, to identifying cash-flow improvements and helping manage outstanding debt,” she said.
“In a cost-of-living crisis, having a chartered accountant in your corner supporting your business is a great way to manage through economic and financial pressures.”
The fact sheet underscores the importance of making contact with services such as the bank, the ATO, and accountants as they can enable a smooth and efficient support structure.
The mechanism has been made with the aim to help slow the rate of business insolvencies that have recently dramatically increased.
CPA Australia CEO Chris Freeland said struggling businesses must speak up due to their critical nature.
“Small businesses are an essential part of our economy and millions of enterprising Australians live and breathe their businesses,” Freeland said.
“Understanding the overall position of your business, including managing your debts and tax obligations is critical to survival and growth.
“Seeking advice from your accountant or bank will give you a better understanding of your options and allow you to make more informed decisions. It could prove to be the best thing you ever did.”
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