EOFY Conversations to Protect Clients and Their Businesses

As the end of the financial year approaches, many clients are feeling the pressure. Rising costs, tight cashflows, and mounting tax debts are taking their toll, and it’s natural for them to feel overwhelmed. That’s when trusted advisors, can make a real difference. At de Jonge Read, we believe EOFY is more than just a time to crunch numbers — it’s an opportunity to help clients step back, protect what they’ve built, and plan for a more secure future.

Let’s Tackle Tax Debt Risks Together

Right now, we’re seeing a big push from financiers offering tax debt refinancing as a way to keep interest payments deductible. While this might sound appealing, it often creates more problems than it solves. We’ve seen clients refinance ATO debts into secured loans, only to struggle with repayments and end up in a worse position.

Instead of taking on more debt, let’s work with your clients to explore smarter, more sustainable solutions. Restructures or business workouts might offer a safer path forward — helping them manage cashflow while keeping their businesses afloat.

Getting Business Structures Right

Transitioning clients from sole traders or partnerships into protective corporate structures can be a game changer, but only if it’s done properly. Without proper sale agreements and PPSR registrations, clients could be left personally exposed if things go wrong.

Here’s how we can help them:

• Sit down together and check that sale agreements and valuations are complete.
• Help them re-establish trade supply accounts in the new structure’s name.
• Encourage them to set up a personal guarantee register to avoid future complications.

When we take the time to get the structure right, we’re not just managing risk, we’re creating opportunities for growth and long-term stability.

Spousal Directorship and Asset Protection

In family businesses, it’s common for both spouses to be listed as directors, but this can significantly increase their personal risk. When reviewing their structures consider where possible, reducing to one director.

We should also look at how family assets like the home are held. If a house has been transferred between spouses for “natural love and affection” without a proper sale, it could become a target in insolvency. And if the spouse holding the property doesn’t have enough income to support mortgage payments independently, the protection could fall apart.

This EOFY, let’s take proactive steps to safeguard our clients’ families and futures.

Annual Reviews: A Chance to Make a Real Difference

EOFY reviews aren’t just a box-ticking exercise — they’re a chance for us to sit down with clients and plan for the year ahead. These reviews should not only be about reassessing tax strategies and structures to ensure long-term sustainability.

But should also include:

• Reviewing security positions for directors who’ve put their own money into the business.
• Identifying opportunities to transition to stronger, more protective structures.
• Ensuring personal and business finances are properly separated.

These conversations can be life-changing for clients, giving them the confidence and clarity they need to move forward.

Let’s Start the Conversation

We understand how overwhelming these challenges can feel for clients. If you’re unsure about the best approach — whether it’s handling tax debts, restructuring, or protecting family assets, now’s the time to talk. At de Jonge Read, we’re here to provide practical solutions, guidance, and support.

Call us today for a confidential chat or email us now to arrange a consultation. Together, we can help your clients not just survive but thrive.

Should you have clients or associates that you know are struggling with financial issues or need assistance in reviewing their business affairs in preparation for what’s around the corner, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Contact us now on p. 1300 765 080 | ua.mo1749780427c.arj1749780427d@ofn1749780427i1749780427

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