Small business owners face tough action from the Australian Tax Office as it attempts to claw back growing tax debts.
The Australian Financial Review reports that the ATO has dropped its “soft touch” approach used during the economic downturn and is increasing the number of ‘director penalty notices’, which makes company directors personally liable for their business’ debt.
SMEs being squeezed to death
In further bad news for small firms, margins continue to be squeezed, with many facing insolvency. A tough credit market and the strength of larger competitors have been blamed for the 1,327 companies that became insolvent in July. http://afr.com/p/national/smes_face_mounting_debts_MX1OtHBzF9Hbs5Q6Xy2MVL?hl
ABCC to take on broader role
The building industry’s watchdog will take on new responsibilities to tackle rogue businesses in the sector. The Australian Building and Construction Commission said that it will take on a broader regulatory role to tackle underpayment claims, as well as unlawful union action.
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The Australian dollar rose to US98.72 cents, while the Dow Jones Industrial average rose by 1.18%.