00:00Neville Walton has a message that you don't always hear.
00:06Cheers to the tax office, thank you.
00:08The Publican recently convinced the ATO to wipe most of his pub's unpaid tax bill which was up to $350,000.
00:17Hopefully in the 18 months time I can come out of it debt free.
00:21Neville used restructuring laws that let small businesses ask entities that they owe money to to wipe large chunks of this debt.
00:29If they approve it then that plan sort of resets the company including the debts that it owes so that it can continue to trade afterwards.
00:38More of these restructures are being lodged and construction, accommodation and hospitality businesses are using them the most.
00:4634% involved debts between $200,000 and $400,000 with businesses on average asking for 79% of this to be wiped.
00:56Almost 9 in 10 restructures went through.
00:59The ATO is the largest creditor in most small business restructures and that means that they control the voting.
01:08Most of the companies that are going through these restructures are still registered within the next year.
01:14But beyond this there is very little data about the long term success of this policy and whether it's encouraging good business or simply wiping debt.
01:24ASIC says that there's no evidence that these laws are being misused but some still have mixed feelings.
01:30I think there's some downside there where it can be utilised to avoid paying debts.
01:37The Albany Hotel is still trading six months later.
01:41Although I won't have anything to sell with the business I'll be able to sleep at night.
01:47Neville hopes to retire in several years.
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