Actions for SMEs to get on the front foot with outstanding tax debt

From 2019 to 2020 the ATOs collectable debt has grown by its largest ever margin, from $26.6 billion to $34.1 billion.

Now two years into the pandemic, the ATO have begun chasing payment on outstanding debts, and have started to act on their powers to report businesses to credit reporting agencies. It’s a good time to check if you have outstanding debt and whether you need additional funding to assist.

Do you have outstanding tax debts?

Laws passed in 2019 allow the ATO to report a business to credit rating agencies.

These powers were initially put on hold to allow businesses to cope with the tough conditions created by the pandemic but the ATO are notifying of their intent to commence action and disclose SME tax debt to credit reporting agencies.

Your business could be reported if you;
• owe over $100,000 in tax
• have an ABN
• are more than 90 days in arrears
• don’t have a payment plan in place or being negotiated

Business tax debt captured in the tax debt disclosure threshold includes;
• income tax debts
• activity statement debts
• superannuation debts
• fringe benefit debt
• penalties and interest charges

For further details click here credit reporting law now being enforced