21/10/2026
You receive an ATO notice about an overdue BAS while a supplier demands payment for an outstanding invoice. Your business account can't cover both. Suddenly you have two connected problems: a tax compliance issue and a commercial dispute. π§©
Running a business or managing an investment property involves more than keeping receipts and lodging returns. Contracts, business structures, ownership arrangements, and ATO obligations can all affect your financial position and when these areas overlap, a decision that seems straightforward today could create an expensive problem later. The key is identifying who owns the asset, who carries the obligation, and which documents determine the outcome.
β
Business structure matters β sole trader, partnership, company, or trust each affects how you report income and expose personal assets. A lower tax rate alone doesn't make a new structure the best choice.
β
Contracts can determine GST treatment β if the contract, invoice, and bookkeeping records don't match, explaining the discrepancy during an ATO review becomes difficult.
β
CGT timing isn't settlement β for a typical property sale, the CGT event generally occurs when the contract is entered into, not at settlement. That can affect which income year includes the gain.
β
Directors aren't always protected β certain unpaid PAYG withholding and superannuation guarantee charge liabilities can trigger director penalty provisions. A payment plan doesn't automatically resolve every liability.
β
Transferring assets into a trust isn't a simple admin change β depending on circumstances, it may trigger CGT, stamp duty, and other consequences.
A payment plan with the ATO may help manage repayments but it doesn't automatically resolve every director liability or insolvency concern. If your business cannot pay its debts when they fall due, review the financial position promptly and obtain appropriate tax and legal advice before taking on further obligations or transferring assets. Some situations require both professionals working together.