As small business owners across the country lodge their tax returns, brokers can play a key role in helping them.
This is the message from specialist lender Liberty, which helps small business customers consolidate their tax debt.
Group sales manager at the specialist lender, John Mohnacheff, said brokers should be reaching out to their small business customers at this time of year.
Many small business owners aren’t aware they can consolidate tax debt into an existing home or commercial loan.
However, not all lenders accept tax debt, so brokers should know their options.
He added, “If people get a little bit behind with their tax debt, you really don’t want that scrutiny from the ATO. This is especially if legislation passes giving the ATO power to report tax debt to credit agencies. You’re far better off clearing the debt by consolidating.
While not all customers will seek out a broker for help with tax debt, Mohnacheff said it is about having a discussion with customers about their potential future needs.
He said, “Brokers can remind self-employed people when looking after their home or investment loan, that they can also help if they find themselves in a situation with unpaid tax debt. Small business owners often feel better just knowing that such solutions exist.”
“It’s becoming more critical to have these conversations with customers. It’s not just about the home loan, as we’ve always said.
“They have to sit down and ask questions such as how are your tax liabilities? Have you done your tax returns? What are your business plans?
“It’s important to mention you can help structure tax debt. There are lots of things that a broker can do to make life easier for small businesses.”