Getting Assistance For ATO Debt And Finances

Lost Your Job Due To COVID And Struggling Financially?

Financial problems can be a challenging experience, but the added burden of losing your job, it can become massive distress for the entire family. With the recent mandatory vaccination in Western Australia, many of those against vaccines have already lost their jobs and are struggling financially while also trying to get out of tax debt.

Many people have lost their jobs due to COVID vaccination mandates in WA and have issues with ATO debt. With a lack of monetary flow, debt management can become difficult. Moreover, the Australian Taxation Office (ATO) can take the necessary steps that could lead to legal actions.

If you are in such a situation, it is important to take the right measures and consult the experts to help you out.

COVID Vaccination Mandate in WA

More than 40,000 people working in Western Australia are estimated to lose their jobs if they refuse the compulsory vaccination for COVID. According to a survey, around 5% of the workforce in the state are still on the fence about getting the mandatory vaccinations and 3.7% are anti-vaxers with no intentions of getting vaccinated.

An estimated 39,000 workers are subjected to the mandatory vaccine requirement because of the nature of their jobs, including coach sports, sports coaches, daycare centres, receptionists, dental assistants, nurses, firefighters, police, FIFO workers, truck drivers, delivery drivers, logistics workers, and more. Losing their jobs due to these mandates has resulted in these workers facing tax debt and other tax problems.

With the loss of their jobs, many people are now in financial distress, particularly with their taxes. Often, people leave the tax payment for later and neglect to take proper measures to make the process manageable, resulting in tax debts. This has now become an alarming concern, with many anti-vaxers losing or on the verge of losing their jobs.

Having an outstanding tax payment means the Australian Taxation Office (ATO) can take the necessary steps to recover the unpaid tax debt. It is essential to be aware of the procedures and steps ATO can take in order to ensure you take the appropriate actions to prevent the situation from going worse. It is important to get the right advice with taxes to get back on track and avoid further major financial problems.

Steps You Can Take To Reduce Tax Debt

You might be tempted to resolve your ATO tax debt is to applying for a loan to pay off debt. While this could be a solution in some cases, it could

1.     Cut Down on Discretionary Spending

Start by cutting down on your discretionary spending, which are the nice-to-have things that you might not really need. These are the purchases that are not basic necessities but are referred to as quality of life purchases, which you can easily go without.

Some examples include:

• Concert tickets
• Gym memberships
• Holiday expenses
• Luxury clothing
• Personal grooming services, like salon visits
• Restaurant meals, including takeaway and dine-in
• Travelling costs
• TV/movie/music streaming subscriptions, like Netflix and Spotify

2.     Establishing and Sticking to a Budget

One of the most effective ways of credit management is creating a house budget to reduce spending. While it might seem overwhelming, making a budget is not really complicated. It is merely a plan about where you will spend the money.

Avoid overcomplicating the budget. The simplest way of making an effective budget is by categorizing your expenses into wants, needs, and goals. This will not only help you spend your money responsibly but will also help you in monitoring and reducing your expenses. This, in turn, will help you with the ATO debt and other tax payments.

Keep in mind that it is essential to allocate a specific amount of money every month toward your financial goals. Your main objective should be to pay off debts and any taxes you owe to avoid further financial crises.

Aside from this, you should also include small goals to help you achieve financial success. Some major steps you can take to create a budget is by:

• Determining your existing income
• Identifying fixed monthly bills, including rent or mortgage, insurance, car payment, utilities, etc.
• Highlighting your needs, including food, medical expenses, gas, etc.

Whatever will be left would be discretionary spending. However, before that, you need to allocate a specified amount to make debt repayments and save a certain amount in your emergency fund.

3.     Lowering Your Expenses

Once you have created a budget for the house, determine how to cut down on spending to manage your debts. A budget will help you identify your unnecessary expenses so you can figure out how to reduce spending. If you are confused or overwhelmed about your financial situation, consulting a professional debt management service is highly recommended.

How BAC Can Help With Your ATO Debt And Other Finances

While there are multiple reasons and circumstances that can push you toward financial trouble, losing your job due to COVID mandates can be even more stressful. Fortunately, there are ways to get out of ATO debt and other financial problems.

The Bankruptcy Advisory Center offers a no-obligation, free consultation regarding your financial solution to discuss your options. Our team works across Australia to provide free financial advice related to ATO debt, debt relief, and whether or not bankruptcy or insolvency is the right solution for you. Using the right professional bankruptcy assistance, you would be able to make an informed decision and come out of your financial problems. Get in touch with us for a free consultation