This episode was recorded live at our Sydney breakfast seminar.

The ATO was generous during Covid, allowing Australian small businesses to add $15B to its pre-Covid undisputed arrears, bringing the total to $30B. However, playtime is over, and the ATO now wants to collect. In taking measures ranging from credit agency default listings to the initiation of winding-up proceedings, the ATO poses a significant threat to individual SMEs facing cash flow issues and trying to raise capital. This, however, presents an unprecedented opportunity for finance professionals. In this seminar, we will delve into the intricacies of this financial landscape, equipping you with the knowledge and strategies to navigate ATO arrears when raising capital.

This episode featured guest expert panel:

• Michael Moon
• Shannon Cavanagh
• Sule Arnautovic

In this episode, we covered:

• ATO's Approach and Stats:

  • ATO has become more active post-COVID, with a significant increase in tax debt.
  • Key tools include credit reporting and Director Penalty Notices (DPNs).
  • Tax debt has substantially increased, affecting small businesses the most.

• Client Evaluation and Financing:

  • Evaluating clients' overall financial picture beyond short-term debt.
  • Blended rates and diverse financing options are essential for managing debt effectively.

• Corporate Restructuring:

  • Formal restructuring options to manage ATO and other debts.
  • Corporate restructuring primarily addresses unsecured debt, with equipment finance companies often being cooperative.

• Negotiation Strategies with ATO:

  • Early engagement and proper engagement with the ATO are crucial.
  • Compliance with ATO's legal practice statements is essential for favourable outcomes.

Interested in future breakfast seminars by Hermes Capital? Check out our upcoming events here.

In this episode of Lunch Money, we interview the CEO of Spartan Race Australia, Russell Nelms. If you haven’t yet experienced the adrenaline rush of tackling a Spartan obstacle course, you’re missing out on a transformative journey that extends far beyond the finish line. In this blog, we dive into the heart-pounding world of Spartan racing, exploring its profound impact on individuals, families, and communities worldwide.

Lunch Money is produced by Hermes Capital Partners

https://hermescapital.com.au

Lunch Money in March will feature Andrew Cassin, a seasoned expert in M&A, specialising in the transition of ownership for privately held businesses in the lower mid-market. Andrew has over 20 years of front-line experience, helping business owners with thorough preparation for business exits, and offering invaluable insights for business owners aiming for successful and profitable transitions.

We will ask Andrew about the challenges of making businesses saleable in 2024, positioning companies for strategic buyers, and the importance of preparation for a successful exit.

Finance brokers, accountants, lawyers, and capital advisors keen on the intricacies of mergers and acquisitions within the lower mid-market will gain valuable, actionable insights.

Don't miss this conversation - tune in to Lunch Money Podcast.