(7 May 2025 – Australia) Australian enterprises are set to face a perfect storm as the Super Guarantee rises to 12 percent of ordinary time wages, potentially pushing struggling enterprises over the edge as the Taxation Office (ATO) implements new payment plan rules.
The removal of tax deductibility on ATO interest charges might sound like a minor tweak however its impact could be devastating for thousands of businesses already walking a financial tightrope.
Recent ScotPac research reinforces the current state of business vulnerability.
According to the SME Growth Index Report, a quarter of Australian SMEs believe they would face insolvency if they lost just one key client or supplier. Half said they would suffer severe cash flow problems or face negative financial impacts lasting three months or more. And just one in five felt confident they could weather such a loss without financial damage.
“Cost-of-living impacts are hitting consumer-facing businesses especially hard. Six of the top seven industries for recent business closures depend heavily on discretionary spending. Failure rates are exceeding pre-COVID levels” stated ScotPac CEO Jon Sutton.
“The countdown to July 1 has well and truly begun, so the key for businesses with a tax debt is to act now before the new rules take effect. SME owners should be sitting down with their financial advisors to review their current arrangements and to explore suitable options.”
“For more than 35 years, ScotPac has assisted thousands of businesses with flexible and sustainable business solutions in just about every situation, including tax debt management. Our team of experts are on standby to work with business owners and brokers who want to explore restructuring their tax debt with financing options to better to weather whatever economic challenges lie ahead.”