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When and how do directors appoint a Safe Harbour adviser?

18 April 2022 Communications & PR Executive Abigail Cheadle e: abi@mcorpadvisory.com.au d: +61 448 139 340 m: +61 448 139 340
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Navigate your way to Safe Harbour protection using the most appropriate adviser selected for you.

When is the time to appoint a Safe Harbour adviser?

As soon as you’re concerned about meeting your financial obligations or are unable to pay your debts when they fall due (you are personally liable for the debts the company incurs at this point unless you make a formal insolvency appointment or obtain Safe Harbour protection) but before any lapse in meeting your employee and tax obligations.

What are the triggers for appointing a Safe Harbour Adviser?

Generally, if you are worried about the financial position of your company and are not sure how you will be able to pay everyone, then you should seek help.

There are three specific situations where you should definitely seek help:

  1. You have received a Directors Penalty notice from the ATO and will not be able to pay on time.
  2. You have received a garnishee notice from the ATO that will leave you without the funds you need to run the business.
  3. Your bank has told you that they want to appoint an Investigative Accountant.

If Safe Harbour is your best option, how do you choose an adviser to assist you in securing Safe Harbour protection?

The legislation says that an adviser must be “appropriately qualified”. The explanatory memorandum says that it is the director’s responsibility to make sure that the adviser is qualified appropriately, and specifies factors for determining such:

  • the nature, size, complexity and financial position of the company;
  • the adviser’s independence, professional qualifications, and membership of appropriate professional bodies (although there is no detail about which professional bodies);
  • the adviser’s experience; and
  • the adviser needs insurance to protect against negligence.

There are services that can assist directors in selecting the most appropriate entity to assist them. One such service, is that provided on www.safeharbournet.com. They match the requirements of each Safe Harbour job to the most appropriate professional in their network. There network is full of professionals that meet the minimum requirements.

For more details, check out www.safeharbournet.com.au

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When and how do directors appoint a Safe Harbour adviser?

18 April 2022 Abigail Cheadle e: abi@mcorpadvisory.com.au d: +61 448 139 340 m: +61 448 139 340

Navigate your way to Safe Harbour protection using the most appropriate adviser selected for you.

When is the time to appoint a Safe Harbour adviser?

As soon as you’re concerned about meeting your financial obligations or are unable to pay your debts when they fall due (you are personally liable for the debts the company incurs at this point unless you make a formal insolvency appointment or obtain Safe Harbour protection) but before any lapse in meeting your employee and tax obligations.

What are the triggers for appointing a Safe Harbour Adviser?

Generally, if you are worried about the financial position of your company and are not sure how you will be able to pay everyone, then you should seek help.

There are three specific situations where you should definitely seek help:

  1. You have received a Directors Penalty notice from the ATO and will not be able to pay on time.
  2. You have received a garnishee notice from the ATO that will leave you without the funds you need to run the business.
  3. Your bank has told you that they want to appoint an Investigative Accountant.

If Safe Harbour is your best option, how do you choose an adviser to assist you in securing Safe Harbour protection?

The legislation says that an adviser must be “appropriately qualified”. The explanatory memorandum says that it is the director’s responsibility to make sure that the adviser is qualified appropriately, and specifies factors for determining such:

  • the nature, size, complexity and financial position of the company;
  • the adviser’s independence, professional qualifications, and membership of appropriate professional bodies (although there is no detail about which professional bodies);
  • the adviser’s experience; and
  • the adviser needs insurance to protect against negligence.

There are services that can assist directors in selecting the most appropriate entity to assist them. One such service, is that provided on www.safeharbournet.com. They match the requirements of each Safe Harbour job to the most appropriate professional in their network. There network is full of professionals that meet the minimum requirements.

For more details, check out www.safeharbournet.com.au