Tax refunds for small companies elevated final 12 months

In a brand new discovering revealed by CommBank, small-business homeowners obtained a tax refund of round $5000 for the 2024 monetary 12 months.

File figures have been famous within the variety of refunds processed between July and September 2024, which was revealed to be 75 per cent larger than the common quantity processed within the prior three quarters.

“We all know tax time could be each a reduction and a stress level for small-business homeowners. Whereas many are wanting ahead to a refund, it’s additionally a time when cashflow pressures, ATO debt and rip-off dangers can weigh closely, to not point out the on a regular basis stresses of working a enterprise whereas navigating financial uncertainty,” commented Rebecca Warren, govt GM, small enterprise banking at Commonwealth Financial institution.

CommBank information discovered that the majority small-business homeowners would put together their tax returns this quarter, alongside stock planning and advertising and marketing actions for the months forward, beginning with Father’s Day in September, which might add additional stress for small-business homeowners.

“Small-business homeowners are juggling much more duties this quarter, which implies it is a good time for scammers to focus on individuals who merely don’t have time to cease, verify and reject cost requests that will appear misplaced,” Warren stated.

Suggestions and reminders reiterated

Given the challenges forward, CommBank has inspired small companies to take a proactive method to tax time by performing the next duties:

• Separate enterprise and private funds.
• Digitise receipts and data.
• Evaluate deductions.
• Plan for the 12 months forward.

Small companies are additionally warned of a spike in rip-off exercise with cybercriminals impersonating authorities companies such because the ATO or MyGov, utilizing emails, texts or cellphone calls to steal private data or cash. As such, small companies are urged to:

• Be cautious of unsolicited messages or calls requesting private or monetary data.
• Keep away from clicking on suspicious hyperlinks or downloading attachments.
• Confirm any communication by contacting the ATO immediately by way of official channels.

“Scammers reap the benefits of the busy tax season to focus on small companies after they’re most distracted,” Warren stated. “We urge all small enterprise homeowners to remain alert and cease, verify and reject any cost request that doesn’t look fairly proper.”

Small-business homeowners are inspired to participate in packages such because the “Attaining Extra in Enterprise” program supplied at CommBank branches, which goals to coach small companies on the most recent rip-off developments, and find out how to shield their companies from these scams, and Cyber Wardens, a free on-line course designed to upskill enterprise homeowners and their employees on cyber security.

“Small companies are the spine of our financial system, they usually want extra help than ever,” concluded Warren.