Can Sole Traders Use Bankruptcy to Clear Tax Debt? #shorts

Yes — in Australia, sole traders can use bankruptcy to clear most personal and business-related ATO tax debts such as income tax, GST, PAYG, and BAS — provided the debts arose before bankruptcy.

⚖️ Key points:

✅ Cleared by bankruptcy: Personal income tax, GST, BAS, PAYG, and FBT

❌ Not cleared: Superannuation Guarantee Charge (SGC), fraud-related debts, and most court fines

❌ Not cleared: Any new tax debts incurred after bankruptcy begins

The ATO becomes a creditor, and your trustee deals with them like any other creditor

You must lodge all overdue and current tax returns — even debts assessed after bankruptcy (but relating to pre-bankruptcy) are included

👉 Sole traders face complex tax and business debt issues — bankruptcy may provide a fresh start, but some obligations remain. The Insolvency Group helps assess which debts are wiped and protects you from costly mistakes.

📌 Learn more at https://insolvencygroup.com.au

#soletrader #bankruptcyaustralia #taxdebt #insolvencyhelp #shorts #atodebt

Видео Can Sole Traders Use Bankruptcy to Clear Tax Debt? #shorts канала Insolvency Group